Self$-$Study Problem $3\mathrm{.}3$

Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile that was driven $13,000$ miles during $2023,$ all for business purposes. Total miles $($including

business miles$)$ is $16,000.$ His total expenses for his automobile for the year are:

The automobile cost $$40,000$ on January $1,$ and total depreciation for the year, including personal use, was $$8,000.$ His business parking and toll fees for business

amount to $$327.$

Calculate Marc's transportation expense deduction for the year under each method listed below.

Round business use to the two decimal percentages. If required, round your answers to the nearest dollar.

Standard Mileage Method: $

$x$

Actual Cost Method:

Which method should Marc use?