Amy works as an auditor for a large major CPA firm.During the months of September through November of each year,she is permanently assigned to the team auditing Garnet Corporation.As a result,every day she drives from her home to Garnet and returns home after work.Mileage is as follows: For these three months,Amy's deductible mileage for each workday is:

Question

Amy works as an auditor for a large major CPA firm.During the months of September through November of each year,she is permanently assigned to the team auditing Garnet Corporation.As a result,every day she drives from her home to Garnet and returns home after work.Mileage is as follows:  For these three months,Amy's deductible mileage for each workday is:

Quizplus · Accepted Answer

According to the IRS standard mileage rate for 2020, the deductible mileage for business travel is 57.5 cents per mile. Assuming Amy works 5 days a week for 12 weeks (excluding holidays), her total deductible mileage would be:

Mileage per day = roundtrip from home to Garnet
Mileage per day = 2 x 15 = 30 miles

Total mileage for 3 months = mileage per day x 5 workdays x 12 weeks
Total mileage for 3 months = 30 x 5 x 12 = 1,800 miles

Deductible mileage at 57.5 cents per mile = total mileage x mileage rate
Deductible mileage = 1,800 x 0.575 = $1,035

Thus, the deductible mileage for each workday is $1,035 divided by the total number of workdays, which is approximately:

$1,035 ÷ (5 x 12) = $17.25 per workday

Since $17.25 is greater than the standard deduction of $0.00 and the other choices (B and C), the best answer is D) $60.

Amy Works as an Auditor for a Large Major CPA