Problem 9-28 (Algorithmic) (LO. 2) Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2020 drove a total of 15,000 business miles. Information regarding his car expenses is listed below. Business parking $ 240 Auto insurance 2,400 Auto club dues (includes towing service) 288 Toll road charges (business-related) 360 Oil changes and engine tune-ups 384 Repairs 264 Depreciation allowable 4,800 Fines for traffic violations (incurred during business use) 480 Gasoline purchases 5,280 What is Jackson's deduction in 2020 for the use of his car if he uses: If required, round your answers to nearest dollar. a. The actual cost method? 7,056 x Feedback Check My Work A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. b. The automatic mileage method? $ 8,050 x Feedback Check My Work Incorrect 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 standard rate method . If the actual expense 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