Problem 9-30 (LO. 2, 5) William is employed by an accounting firm and uses his a

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Problem 9-30 (LO. 2, 5)

William is employed by an accounting firm and uses his automobile in connection with his work. During the month of October 2015, he works at the office for 3 days and participates in the audit of a key client for 19 days. In the audit situation, William goes directly from his home to the client's office. On all other days, he drives to his employer's office. On four Saturdays in October, he drives from his home to a local university where he attends classes in a part-time MBA program. Relevant mileage is as follows:

Using the automatic mileage method, what is William's deduction for the month?

Round your final answer to the nearest dollar.
$

Problem 9-30 (LO. 2, 5)

William is employed by an accounting firm and uses his automobile in connection with his work. During the month of October 2015, he works at the office for 3 days and participates in the audit of a key client for 19 days. In the audit situation, William goes directly from his home to the client's office. On all other days, he drives to his employer's office. On four Saturdays in October, he drives from his home to a local university where he attends classes in a part-time MBA program. Relevant mileage is as follows:

Travel Miles Home to office 12 Office to audit client 13 Home to audit client 14 Home to university 10

Using the automatic mileage method, what is William's deduction for the month?

Round your final answer to the nearest dollar.
$

Explanation / Answer

.Office to home and home to office is not considered a transportation expense. Nowhere in the example does it say he drives from the office to audit the client. You are left with "home to audit client" and "home to university". Obviously if you are driving to a place you must drive back from it therefore:

Home to audit client to home is 28 miles (14+14) and Home to university to home is 20 miles (10+10).
Take the 28 miles times the 19 days you drive them for a total of 532 miles and take the 20 miles times the 4 days you drive those miles for a total of 80 miles, then add the two together for the total miles driven in October which would be 612 miles.

(14+14)=28*19=532
(10+10)=20*4=80

532+80=612

Here, the deduction is based on 57.5 CENTS per mile for business miles. (Yes, the travel for education counts as business since he is furthering his education.) So take the 612 miles times 57.5 cents per mile to get 35190 cents per mile. It must convert the cents into dollars so divide by 100 to get approximately $352. (100 pennies in one dollar)

612*57.5=35190/100=351.90 or 352 (rounded to the nearest dollar).

Note : The standard mileage rate is the easiest to use because you simply take a mileage deduction for a specified number of cents for every business mile you drive. To figure out your 2015 mileage deduction, simply multiply your business miles by the 2015 standard mileage rate of 57.5 cents per mile.

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