Rajiv,a Self-Employed Consultant,drove His Auto 20,000 Miles This Year,15,000 to Meetings

question 101

Multiple Choice

Rajiv,a self-employed consultant,drove his auto 20,000 miles this year,15,000 to meetings with clients and 5,000 for commuting and personal use.The cost of operating the auto for the year was as follows: $$\begin{array} { | l | r | } \hline \text { Gasoline and repairs } & \$ 7,000 \\\hline \text { Insurance } & 1,000 \\\hline \text { Depreciation } & 4,000 \\\hline\end{array}$$ Rajiv's AGI is $100,000 before considering the auto costs.Rajiv has used the actual cost method in the past.What is Rajiv's deduction for the use of the auto?

• A)$0
• B)$9,000
• C)$12,000
• D)$7,000

Differentiate between various employment relationships, including master-servant, independent contractor, and joint employment.

Recognize the importance of control in determining the nature of employment relationships.

Understand the legal consequences of employment classifications on employer liabilities.

Identify the factors that influence the classification of workers as employees or independent contractors.

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Definitions:

Bile Secretion

The process by which the liver produces bile, a substance that helps digest fats.

Cystic Duct

A tube that transports bile from the gallbladder into the common bile duct and then into the small intestine.

Common Bile Duct

A duct that carries bile from the liver and gallbladder to the duodenum, important for digestion and absorption of fats.

Emulsifies Fats

The process of breaking down fats into smaller droplets, often by bile in the digestive system, to aid in fat digestion and absorption.