Problem $3-6$

Transportation $($LO $3\mathrm{.}3)$

Teresa is a self$-$employed civil engineer who uses her automobile for business. Teresa drove her automobile a total of $12,000$ miles during $2023,$ of which $9,600$ were business miles.

The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $$7,900.$ Teresa is eligible to use the actual or standard method.

If required, round your answers to the nearest dollar.

a$.$ How much is Teresa's transportation deduction based on the standard mileage method?

b$.$ How much is Teresa's transportation deduction based on the actual cost method?

c$.$ Which method should Teresa use to calculate her transportation deduction?

The

yields the larger deduction; thus the one Teresa should use.

actual method

standard mileage method