ransportation (LO 3.3)

Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 11,965 miles during 2019, of which 80% was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,440. Teresa is eligible to use the actual or standard method.

If required, round your answers to the nearest dollar.

a. How much is Teresa's transportation deduction based on the standard mileage method?

Meals and Entertainment (LO 3.5)

Grace is a self-employed sales consultant who spends significant time entertaining potential customers. She keeps all the appropriate records to substantiate her entertainment. She has the following expenses in the current year:

Meals where business was conducted	$5,000
Greens fees (all business)	500
Tickets to baseball games (all business)	500
Country Club dues (all business use)	6,000

b What are the tax-deductible meals and entertainment expenses Grace may claim in the current year?