Michelle is an employee who must use her personal automobile for employment- related business trips. During 2016, Michelle drives her car 60% for business use and incurs the following total expenses (100% use of car):

Gas and oil.......................................$12,000

Repairs..............................................2,800

Depreciation........................................4,700

Insurance and license fees........................2,600

Parking and tolls (business related)................400

Total...............................................$22,500

Michelle drives her car a total of 40,000 miles (24,000 business miles) during 2016 and receives a reimbursement of 40 cents per business mile from her employer. Assume that an adequate accounting is made to Michelle's employer.

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

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

c. Can taxpayers switch back and forth between the mileage and actual methods each year?