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? 

---

Definitions:

Performance Reports

Documents that compare actual performance with budgeted or planned performance in various areas of an organization.

Formal Feedback

Structured and officially provided responses or evaluations, often related to job performance or project outcomes.

Continuous Improvement

A management philosophy focusing on the incremental improvement of products, services, and processes over time.

Lean Business Model

An approach to business aimed at creating value for customers with minimal waste and resources.