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?