LO 4.2 5. George Dick, an employee of Plum Corporation, drove his car a total of 19,595 miles during 2010. Of the total miles, 18,674 were business miles. The total expenses of operating his automobile for the year were as follows:

Gasoline $1,072 License fee 150 Oil 250 Insurance 970 Repairs 360 Interest on automobile loan 1,100 Parking and toll fees for business 250 George purchased his automobile on June 30, 2008, for $12,000, and depreciation expense for 2010 (assuming 100 percent business use at 19.2% depreciation) is $2,304.

In the past, he has used the standard mileage method to calculate his deduction. Using Form 2106 on pages 4-39 to 4-40, calculate George’s deduction for automobile expenses.