What amount is deductible if mandy uses actual cost method

Reference no: EM131910192

Problem

Mandy is an employee who must use her personal automobile for employment-related business trips. During 2016, Mandy drives her car 70% for business use and incurs the following total expenses (100% use of car):

Gas and oil $14,000 Repairs 2,600 Depreciation 4,900 Insurance and license fees 1,400 Parking and tolls (business related) 50 Total $22,950 Mandy drives her car a total of 20,000 miles (14,000 business miles) during 2016 and receives a reimbursement of 40 cents per mile from her employer. Assume that an adequate accounting is made to Mandy's employer.

1. What amount is deductible (before the 2% nondeductible floor) if Mandy uses the standard mileage method?

2. What amount is deductible (before the 2% nondeductible floor) if Mandy uses the actual cost method?

Reference no: EM131910192

Questions Cloud

What is the net present value of the refunding : New 20-year, 6%, semiannual payment bonds can be sold at par, but flotation costs on this issue would be 2% of the amount of bonds sold.

Compute the realized rate of return for an investor : Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

Prepare appropriate entries for manufacturers southern : Prepare appropriate entries for Manufacturers Southern from the beginning of the lease through March 31, 2016.

What is the price of this bond one year later : A 10-year remaining maturity 6% coupon rate bond is selling to yield 6%. The bond pays interest semi-annually. The par value of this bond is $1,000.

What amount is deductible if mandy uses actual cost method : What amount is deductible if Mandy uses the standard mileage method? What amount is deductible if Mandy uses the actual cost method?

What is the probability that the put option will be exercise : You are the treasurer of Arizona Corporation and must decide how to hedge (if at all) future receivables of 350,000 Australian dollars (A$) 180 days from now.

Grand jury proceedings or for a criminal trial : You will also discuss jurors' qualifications as well as challenges for cause and preemptory challenges.

John lennon''s ideas in the song imagine : Post a thread in which you tell your thoughts regarding John Lennon's ideas in the song "imagine".

Explain your would you bu sell or hold the stock : The Kroger Company has an expected rate of return of 0.11 and a B of 1.5. The risk-free rate is 0.05 and the market expected rate of return is 0.09.

User Account

All Pages