Donald, a sole proprietor, worked in Chicago but had to go to Rockford in March for the day on a business assignment. He drove 55 miles each way. Tolls were $4 and parking $6. He had lunch while there at a cost of $12. How much are Donald's deductible expenses in 2018?
A) $75.60
B) $71.25
C) $69.95
D) $67.25

Question

Quizplus · Accepted Answer

Mileage expense: 110 miles x $0.545 (standard mileage rate for 2018) = $59.95
Tolls: $4
Parking: $6
Meals: 50% of $12 = $6
Total deductible expenses: $59.95 + $4 + $6 + $6 = $75.95
Rounded to the nearest penny, the answer is $69.95 (Option C).

Donald, a Sole Proprietor, Worked in Chicago but Had to Go