Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 9-51 (LO 9-2) [The following information applies to the questions displayed below.] Ryan is self-employed. This year Ryan used his personal auto

Required information

Problem 9-51 (LO 9-2)

[The following information applies to the questions displayed below.] Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,590 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $5,400. During the year, he drove his car a total of 14,000 miles (a combination of business and personal travel). (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

a. Ryan can provide written documentation of the business purpose for trips totaling 4,200 miles. What business expense amount can Ryan deduct (if any) for these trips?

b. Ryan estimates that he drove approximately 2,125 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,170 miles. What business expense amount can Ryan deduct (if any) for these trips?

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions