Answer:
A. $7,090
B. $8,390
C. The records that Jackson must maintain is to keep a LOG file that contain the copies of all the receipts for (a) as well as a mileage logs file for (b)
Explanation:
a) Calculation for What is Jackson's deduction for the use of his car if he uses The actual cost method
Jackson's deduction
= 140+200+(90%*1300+180+210+160+2,850+2,800)
Jackson's deduction=140+200+6,750
Jackson's deduction=$7,090
Therefore Jackson's deduction for the use of his car if he uses The actual cost method will be $7,090
b)Calculation for What is Jackson's deduction for the use of his car if he uses The automatic mileage method
Jackson's deduction=( 57.5%* 14,000)+140+200
Jackson's deduction= 8,050 + 140 +200
Jackson's deduction=$8,390
Therefore Jackson's deduction for the use of his car if he uses The automatic mileage method will be $8,390
c) Based on the information given the records
that Jackson must maintain is to keep a LOG file that contain the copies of all the receipts for (a) as well as a mileage logs file for (b)