Brittany, Who Is an Employee, Drove Her Automobile a Total

question 68

Multiple Choice

Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2016. This represents about 75% of the auto's use. She has receipts as follows: $$\begin{array} { | l | r | } \hline \text { Parking (business only) } & \$ 500 \\\hline \text { Tolls (business only) } & 200 \\\hline \text { Repairs } & \$ 1,000 \\\hline\end{array}$$ Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct

• A) $10,500.
• B) $12,500.
• C) $11,500.
• D) $9,800.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Operating Activities

Components of a company's cash flow statement, which reflect the amounts of cash generated or spent from regular business operations.

Point In Time

A specific instant in the timeline when an event occurs, often used in financial reporting to refer to the recognition of transactions and events.

Investing Activities

Refers to the purchase and sale of long-term assets and other investments, not including cash equivalents.