Christine Is a Self-Employed Tax Accountant Who Drives Her Car

question 45

Essay

Christine is a self-employed tax accountant who drives her car to visit clients occasionally throughout the year. She drives her car 1,000 miles for business, 5,000 miles for commuting and 5,000 miles for personal use. Assuming that Christine uses the standard mileage method, how much is her auto expense for 2019? Where in her tax return should Christine claim this deduction?

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Definitions:

Direction

Refers to the course along which something moves or faces, often used in statistical analysis to describe trends.

Slope

The slope represents the rate of change between two variables on a graph, indicating how much one variable changes for a unit change in another variable.

Criterion Variable

The dependent variable in a study that is predicted or explained by the independent variable(s).

Predictor Variable

An independent variable in statistical models that is used to predict or explain changes in the dependent variable (response variable).