Chapter A.8, Problem 38AYU

To determine

To find: How many miles should therese deduct as a business expense?

Answer to Problem 38AYU

$40*500$ miles for business.

Explanation of Solution

Given:

There, an outside salesperson, uses her car for both business and pleasure. Last year, she travelled 30,000 miles, using 900 gallons of gasoline. Her car gets 40 miles per gallon on the highway and 25 in the city. She can deduct all highway travel, but no city travel, on her taxes.

Calculation:

Highway gallons $+$ city gallons $=900$

$h+c=900$

$40h+25c=900$

Highway miles $+$ city miles $=30000$

$h=500, c=400$

Deduct $40*500$ miles for business.