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

---

Definitions:

Population

The entire group of individuals or instances about whom the research is concerned and to which the results of studies are intended to be generalized.

Annual Rainfall

A meteorological measurement indicating the total amount of precipitation received over a year in a given area.

Drought

An extended period of deficient rainfall relative to the statistical multi-year average for a region, resulting in water scarcity.

Tar Content

The amount of tar, a toxic substance, that is produced and released by burning products, such as cigarettes.