The Actual Cost Method Is a More-Flexible Way to Compute

question 69

True/False

The actual cost method is a more-flexible way to compute the auto expense deduction and often results in a larger tax savings.

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Definitions:

Natural Log

A logarithm to the base e, where e is an irrational and transcendental constant approximately equal to 2.71828.

Expected Value

A calculated average of all possible values for a random variable, weighted by their respective probabilities.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Risk Averse

A description of an individual or entity's preference to avoid uncertainty, often choosing options with more predictable outcomes.