Marion drives 20 miles a day from his first job to his second job. He worked 125 days during 2011 on both jobs. What is Marion's mileage deduction rounded to the nearest dollar assuming he uses the standard mileage rate and mileage is incurred ratably throughout the year?
A. $63
B. $1,250
C. $1,331
D. $1,463
is it D
125 x 20 x $0.51 = ??
IRS rate = http://www.irs.gov/newsroom/article/0,,id=232017,00.html
so its B?
I agree with B.
I think your course materials are about a year old. The 2010 rate was $0.50/mile, and that works out to B -- exactly!!
oh because i have posted three more questions and i cant seem to get the right numbers
Yes, look up the IRS rates for 2010.
Andy,
I came up with the answer.
2500 x .26= 650.
125 x .26= 32.50
2500 x .3250= 812.50
812.50+650= 1462.50.
To calculate Marion's mileage deduction, we need to multiply the number of miles he drives by the standard mileage rate. The standard mileage rate is the amount set by the Internal Revenue Service (IRS) for each business mile driven.
For 2011, the standard mileage rate was 51 cents per mile.
First, we need to find the total number of miles Marion drove in 2011.
Marion drives 20 miles a day between his first and second job, so we can calculate his total miles driven in 2011 as:
20 miles/day * 125 days = 2500 miles.
Next, we multiply the total miles driven by the standard mileage rate:
2500 miles * $0.51/mile = $1275.
Since the question asks for the mileage deduction rounded to the nearest dollar, we round $1275 to the nearest dollar:
$1275 rounds to $1,275.
Therefore, the correct answer is B) $1,250.