(Solution) - Mario owns his own business and drives his car 15 000 -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Mario owns his own business and drives his car 15,000 miles a year for business and 7,500 miles a year for commuting and personal use. He wants to claim the largest tax deduction possible for business use of his car. His total auto expenses for 2011 are as follows:
Gas, oil, and maintenance ... $8,700
Insurance ........... 800
Interest on car loan ........ 480
Depreciation .......... 3,060
License ............. 180
Parking fees and tolls (all business) . 290
a. What is Mario?s 2011 deduction using the standard mileage rate method?
b. What is Mario?s 2011 deduction using the actual cost method?