For Margaret, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Margaret is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Monthly payment Time frame Warranty Full coverage insurance Operating cost Expected mileage per year Safety features $480 Buy New 6 years Excellent for 100,000 miles $215 per month $0.20 per mile 16,200 Maximum $350 Buy Used 4 years Excellent for next 40,000 miles only $155 per month $0.20 per mile 16,200 Moderate Lease Midnight-Blue SUV $330 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $190 per month $0.20 per mile 16,200 Maximum

For Margaret, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Margaret is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Monthly payment Time frame Warranty Full coverage insurance Operating cost Expected mileage per year Safety features $480 Buy New 6 years Excellent for 100,000 miles $215 per month $0.20 per mile 16,200 Maximum $350 Buy Used 4 years Excellent for next 40,000 miles only $155 per month $0.20 per mile 16,200 Moderate Lease Midnight-Blue SUV $330 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $190 per month $0.20 per mile 16,200 Maximum

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter9: Deductions: Employee And Self- Employed-related Expenses

Section: Chapter Questions

Problem 49P

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