LO2 Mario owns his own business and drives his car 15,000 miles a year for business and 7,500 miles a year for commuting and personal use. He wants to claim the largest tax deduction possible for business use of his car. His total auto expenses for 2010 are as follows:

a. What is Mario’s 2010 deduction using the standard mileage rate method?

b. What is Mario’s 2010 deduction using the actual cost method?

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Gas, oil, and maintenance Insurance Interest on car loan Depreciation License Parking fees and tolls (all business) $8,700 800 480 2,960 180 290