Tirta has a home décor consulting business. She drives a 2013 Chevy Sonic (which she only uses for business) to her clients' houses for meetings. The vehicle is fully depreciated and paid off. She keeps excellent records, and for 2021 has the following items: 6,850 business
Tirta has a home décor consulting business. She drives a 2013 Chevy Sonic (which she only uses for business) to her clients' houses for meetings. The vehicle is fully depreciated and paid off. She keeps excellent records, and for 2021 has the following items: 6,850 business
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tirta has a home décor consulting business. She drives a 2013 Chevy Sonic (which she only uses for business) to her clients' houses for meetings. The vehicle is fully depreciated and paid off. She keeps excellent records, and for 2021 has the following items: 6,850 business miles, tolls $150, parking $75, gas $885, maintenance $350, registration $100, and insurance $1,500. In her first year claiming the vehicle, she used the actual expense method. For 2021, which rate is her best option, and what would her deduction be?
Expert Solution
Step 1 Introduction
In order to recover variable cost of vehicle from client Tirtha has to calculate average cost of running the car by total cost dividing by no. Of miles
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