Problem 9-21 (Algorithmic) (LO. 2)

Jackson, a self-employed taxpayer, uses his automobile 88% for business and during 2022 drove a total of 15,000 business miles. Information regarding his car expenses is listed below.

Business parking	$170
Auto insurance	1,700
Auto club dues (includes towing service)	204
Toll road charges (business-related)	255
Oil changes and engine tune-ups	272
Repairs	187
Depreciation allowable	3,400
Fines for traffic violations (incurred during business use)	340
Gasoline purchases	3,740

What is Jackson's deduction in 2022 for the use of his car if he uses:

If required, round your answers to nearest dollar.

Question Content Area

a. The actual cost method? $fill in the blank 7b5f91f93002fa1_1

Question Content Area

b. The automatic mileage method? $fill in the blank a9c1630b8f8d04b_1

Question Content Area

c. What records must Jackson maintain? Keeping a written or electronic log of miles driven, the dates the automobile was used, the location of travel, and the business purpose is enough evidence for the

actual expense methodstandard rate method

. If the

actual expense methodstandard rate method

is used, keeping copies of receipts, canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously (e.g., updated weekly or daily).