A Taxpayer Who Uses the Automatic Mileage Method to Compute

question 2

True/False

A taxpayer who uses the automatic mileage method to compute auto expenses can also deduct the business portion of tolls and parking.

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Definitions:

Capital Stock

The total number of shares that a corporation is authorized to issue as stated in its corporate charter.

Assets

Economic resources controlled by a business from which future economic benefits are expected to flow to the business.

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of premiums and the provisions of coverage.