Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 21,732 miles during 2014, of which 95 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,300.

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?  _______________________________

Why? _________________________________________________________________________________________________________________