Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jackson uses his automobile 90% for business and during 2016 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.

Jackson uses his automobile 90% for business and during 2016 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.

Business parking $140

Auto insurance 1,300

Auto club dues (includes towing service) 180

Toll road charges (business-related) 200

Oil changes and engine tune-ups 210

Repairs 160

Depreciation allowable 2,850

Fines for traffic violations (incurred during business use) 320

Gasoline purchases 2,800

What is Jackson's deduction in 2016 for the use of his car if he uses:

a. The actual cost method?

b. The automatic mileage method?

C. What records must Jackson maintain?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Message Brand And Dollars Auditing Marketing Operations

Authors: J. Mike Jacka, Peter R. Scott

1st Edition

163454000X, 9781634540001

More Books

Students also viewed these Accounting questions

Question

Discuss the six focus organizations used in this book.

Answered: 1 week ago