On January 2, 2015, Joyce purchases a new car to use in her business. The car, a Volster, costs $15, 200. Joyce pays $2, 200 in cash and finances the balance through the dealer. She uses the car 45 percent of the time for business and drives a total of 10, 800 miles during 2015. The total expenses for the 10, 800 miles driven are: repairs and maintenance, $240; insurance, $920; and gasoline, $1, 960. The correct depreciation expense for 2015 is $684 ($15, 200 times 45% times 10%). Joyce's office is located m a separate room in the house and occupies 375 square feet. The total square footage of the house is 2, 500. The Schnappaufs purchased the home on July 7, 2001, for $70,000. The local practice is to allocate 10 percent of the purchase price to land. The depreciation percentage for the office is 0.02564. When Joyce started her business on January 1, 2007, the fair market value of the house was $108,000. The total household expenses for 2015 are at follows: Bill began work on his MBA at Denville University. He enrolled in two courses, and paid $3,000 in tuition and $310 for books. Bill and Joyce each contribute the maximum to their respective IRA accounts in 2015. The IRA account b Joyce's only retirement vehicle. Bill's basis in his IRA before the current year's contribution is $26,000, and Joyce's basis a $36,000. The fair market value of Bill's IRA on 12/31/15 is $41, 720, and the fair market value of Joyce's IRA it $57, 100. In addition. Bill and Joyce contributed $2,000 to a Coverdell Education Savings Account for Thomas. On June 15, 2015, the Schnappaufs' 2014 station wagon is totaled in Hurricane Ann. The car was purchased for $28, 700 in November 2013. The Schnappaufs receive a check for $21, 200 from Zippy Insurance Company that represents the fair market value of the car minus a $750 deductible. On June 26, 2015, they replace the car with a 2015 station wagon. The new car cents $31, 400, and the Schnappaufs receive a rebate cheek from the car's manufacturer for $2, 500 The hurricane also damages part of the Schnappaufs' house. A tree falls and makes a hole in the roof above the kitchen. Water damages the kitchen, causing the new dishwasher to short out, and it has to be replaced. In addition, the linoleum floor has to be replaced. The cost of fixing the hole in the roof is $3,000. The Schnappaufs receive $2, 500 ($3,000 repair cost minus $500 deductible) to fix the roof. Information concerning the dishwasher and the floor is as follows: On January 2, 2015, Joyce purchases a new car to use in her business. The car, a Volster, costs $15, 200. Joyce pays $2, 200 in cash and finances the balance through the dealer. She uses the car 45 percent of the time for business and drives a total of 10, 800 miles during 2015. The total expenses for the 10, 800 miles driven are: repairs and maintenance, $240; insurance, $920; and gasoline, $1, 960. The correct depreciation expense for 2015 is $684 ($15, 200 times 45% times 10%). Joyce's office is located m a separate room in the house and occupies 375 square feet. The total square footage of the house is 2, 500. The Schnappaufs purchased the home on July 7, 2001, for $70,000. The local practice is to allocate 10 percent of the purchase price to land. The depreciation percentage for the office is 0.02564. When Joyce started her business on January 1, 2007, the fair market value of the house was $108,000. The total household expenses for 2015 are at follows: Bill began work on his MBA at Denville University. He enrolled in two courses, and paid $3,000 in tuition and $310 for books. Bill and Joyce each contribute the maximum to their respective IRA accounts in 2015. The IRA account b Joyce's only retirement vehicle. Bill's basis in his IRA before the current year's contribution is $26,000, and Joyce's basis a $36,000. The fair market value of Bill's IRA on 12/31/15 is $41, 720, and the fair market value of Joyce's IRA it $57, 100. In addition. Bill and Joyce contributed $2,000 to a Coverdell Education Savings Account for Thomas. On June 15, 2015, the Schnappaufs' 2014 station wagon is totaled in Hurricane Ann. The car was purchased for $28, 700 in November 2013. The Schnappaufs receive a check for $21, 200 from Zippy Insurance Company that represents the fair market value of the car minus a $750 deductible. On June 26, 2015, they replace the car with a 2015 station wagon. The new car cents $31, 400, and the Schnappaufs receive a rebate cheek from the car's manufacturer for $2, 500 The hurricane also damages part of the Schnappaufs' house. A tree falls and makes a hole in the roof above the kitchen. Water damages the kitchen, causing the new dishwasher to short out, and it has to be replaced. In addition, the linoleum floor has to be replaced. The cost of fixing the hole in the roof is $3,000. The Schnappaufs receive $2, 500 ($3,000 repair cost minus $500 deductible) to fix the roof. Information concerning the dishwasher and the floor is as follows