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:

Bipolar Cell

Bipolar cells are a type of neuron found in the retina, acting as an intermediary between photoreceptors that detect light and ganglion cells that transmit visual information to the brain.

Horizontal Cell

A neuron in the eye that integrates and regulates input from multiple photoreceptor cells.

Rod

Photoreceptor specialized for functioning at low light levels.

Cone

Photoreceptor specialized for color and high visual acuity.