In 2020, RayeAnn acquires a car for $14,000. She uses the car in her advertising business and for personal purposes. Her records indicate the car is used 70% for business and that her total annual operating expenses, including depreciation, are $4,000.

Round intermediate computations and final tax liability to the nearest dollar.

a. How should RayeAnn treat the operating costs of the car for tax purposes?

__________ of RayeAnn's expenses are treated as a business expense. She can deduct _________ of the cost of operating the car.

b. In 2023, RayeAnn sells the car for $6,500. Her business use for 2021 through 2023 remains at 70%, and she properly deducted $6,860 in depreciation. What is her taxable gain or loss from the sale of the car?

Her taxable gain or loss from the sale of the car is a(n) $fill in the blank cae11902e014fb5_1 gain for the business asset. For the personal asset, there is a loss of $fill in the blank cae11902e014fb5_4 and is not deductible .

Mixed Business and Personal Expenditures (LO. 7) In 2020, RayeAnn acquires a car for $14,000. She uses the car in her advertising business and for personal purposes. Her records indicate the car is used 70% for business and that her total annual operating expenses, including depreciation, are $4,000. Round intermediate computations and final tax liability to the nearest dollar. a. How should RayeAnn treat the operating costs of the car for tax purposes? 2,800 X % of RayeAnn's expenses are treated as a business expense. She can deduct $ 1,200 X of the cost of operating the car. Feedback Check My Work b. In 2023, RayeAnn sells the car for $6,500. Her business use for 2021 through 2023 remains at 70%, and she properly deducted $6,860 in depreciation. What is her taxable gain or loss from the sale of the car? Her taxable gain or loss from the sale of the car is a(n) $ gain for the business asset. For the personal asset, there is a loss of $ and is not deductible Mixed Business and Personal Expenditures (LO. 7) In 2020, RayeAnn acquires a car for $14,000. She uses the car in her advertising business and for personal purposes. Her records indicate the car is used 70% for business and that her total annual operating expenses, including depreciation, are $4,000. Round intermediate computations and final tax liability to the nearest dollar. a. How should RayeAnn treat the operating costs of the car for tax purposes? 2,800 X % of RayeAnn's expenses are treated as a business expense. She can deduct $ 1,200 X of the cost of operating the car. Feedback Check My Work b. In 2023, RayeAnn sells the car for $6,500. Her business use for 2021 through 2023 remains at 70%, and she properly deducted $6,860 in depreciation. What is her taxable gain or loss from the sale of the car? Her taxable gain or loss from the sale of the car is a(n) $ gain for the business asset. For the personal asset, there is a loss of $ and is not deductible