You receved no credit for this question in the preious attempt 12 Required infor

Question

You receved no credit for this question in the preious attempt 12 Required information Pert 1 of 2 The following information applies to the questions displayed below Ryan is self employed. This year Ryan used his personal auto for several ong business trips, Ryan paid $2190 for gasoine on these trips. His depreciation on the car if he was using it fuly for business purposes would be $3600. During the year he drove his car a total of 21100 miles (a combination of business and personal trave (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 4.220 miles. What business expense amount can Ryan deduct (if any) for these trips? Reference inks ion: 6 word: lab-104 inch as fecah S( fsee 1 onta

Explanation / Answer

There are two cost:

Direct cost which is gasoline expense, this cost will be available for deduction fully.

Indirect cost which is depreciation, this cost will be allowed on a pro rata basis based on usage for business purposes.

Deduction for Gasoline expense $2190 Deduction for Depreciation
[$3600/ 21100 x 4220] 720 Maximum deductible amount $2910

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