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This year Clark leased a car to drive between his office and various work sites. Clark carefully recorded that he drove the car 23,000 miles this year and paid $7,200 of operating expenses ($2,700 for gas, oil, and repairs, and $4,500 for lease payments). What amount of these expenses may Clark deduct as business expenses

Respuesta :

eooyibo123

Answer:

$7,200

Explanation:

Expense can be defined as the cost incurred by an organisation as it tries to generate revenue in its daily activities.

It is the cost of doing business, and is the sum total of cost incurred for all activities geared at making profit.

So in this instance Clark was visiting work sites for the company, he leased a car for $4,500 and spent $2,700 on fuel. The sum total is $7,200 and this is the amount he will deduct as business expense.

jepessoa

Answer:

$13,340

Explanation:

The standard mileage deduction for 2019 is 58 cents per mile, that means that regardless of other expenses related to the vehicle, you can only deduct $0.58 per mile driven for business purposes.

In this case, Clark drove 23,000 miles for business purposes x $0.58 per mile = $13,340

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