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Mercedes Is an Employee of MWH Company and Drives Her

Question 29

Multiple Choice

Mercedes is an employee of MWH company and drives her car 12,000 miles a year for business and 3,000 miles a year for commuting and personal use.She is not reimbursed by her employer.She wants to claim the largest tax deduction possible for business use of her car,before any limitations on itemized deductions.Her total auto expenses for 2013 are as follows:
 Gas, oil, and maintenance 4,600 Insurance 720 Interest on car loan 500 Depreciation 2,960 License 80 Parking fees and tolls (100% business)  130\begin{array}{lr}\text { Gas, oil, and maintenance } & 4,600 \\\text { Insurance } & 720 \\\text { Interest on car loan } & 500 \\\text { Depreciation } & 2,960 \\\text { License } & 80 \\\text { Parking fees and tolls (100\% business) } & 130\end{array}
Mercedes's total 2013 deduction for automobile use is:


A) $6,420
B) $6,660
C) $6,790
D) $7,218
E) $7,310

Correct Answer:

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