Michelle is an employee who must use her personal automobile for employment-related business trips. During 2013, Michelle drives her car 60% for business use and incurs the following total expenses (100% use of car):

Gas and oil ...............................................$ 9,000

Repairs ................................................... 1,400

Depreciation ............................................. 4,700

Insurance and license fees ............................. 1,300

Parking and tolls (business related) .................. 100

Total...................................................... $16,500

Michelle drives her car a total of 40,000 miles (24,000 business miles) during 2013 and receives a reimbursement of 40 cents per business mile from her employer. Assume that an adequate accounting is made to Michelle's employer.

a. What amount is deductible (before the 2% nondeductible floor) if Michelle uses the standard mileage method?

b. What amount is deductible (before the 2% nondeductible floor) if Michelle uses the actual cost method?

c. Can taxpayers switch back and forth between the mileage and actual methods each year?