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Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 6,000 miles through June 30, 2022 and another 7,000 miles
Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 6,000 miles through June 30, 2022 and another 7,000 miles during the remainder of the year, all for business purposes. Total miles (including business miles) is 16,000. His total expenses for his automobile for the year are: Gasoline Oil changes Insurance Tires Repairs Total $2,061 6,850 92 The automobile cost $20,000 on January 1, and depreciation expense for the year, including business use, was $4,000. His business parking and toll fees for business amount to $327. Which method should Marc use? Standard mileage 1,030 225 620 $4,028 Calculate Marc's transportation expense deduction for the year under each method listed below. Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: $ 9,360 X Actual Cost Method:
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