Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 56

In 2008 Jessica bought a new truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12,000 in 2008, 14,500 in 2009, and 13,000 in 2010.
a. If Jessica uses the standard mileage method, how much may she deduct on her 2010 tax return?
b. What is the deduction for 2010 assuming the actual method was used from the beginning? Calculate depreciation only; the truck is not limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase.