Alvin Is a Self-Employed Sound Technician Who Reports on the Cash

question 91

Essay

Alvin is a self-employed sound technician who reports on the cash method and calendar year. Alvin has a shop in Austin, Texas, but he spends much of his time away from his shop traveling to and from various concerts around the country. Alvin leases a truck to move his equipment around the country, and this year, he spent $12,000 in lease payments and paid $18,000 for gas, oil, and repairs. Alvin keeps records of his personal use of the truck and he estimates that 6,000 of the total 36,000 miles put on the truck this year were for personal trips. What amount of these expenses may Alvin deduct as business expenses?

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Definitions:

Congruence

A condition in which an individual's ideal self and actual experience are consistent or very similar.

Declarative

Declarative pertains to statements that convey information, in psychology specifically refers to memory that can be consciously recalled, such as facts and events.

Procedural

Relating to the procedures or steps followed to accomplish a task, often used in the context of legal, organizational, or programming processes.

Working Self-concept

The aspect of one's self-identity that is currently active in thought and influences behavior and perceptions in specific situations.