For Maria, 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. Maria 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 $510 Buy New 6 years Excellent for 100,000 miles $210 per month $0.20 per mile 13,800 Maximum $370 Buy Used 4 years Excellent for next 40,000 miles only $145 per month $0.20 per mile 13,800 Moderate Lease Midnight-Blue SUV $290 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $180 per month $0.20 per mile 13,800 Maximum SUI

For Maria, 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. Maria 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 $510 Buy New 6 years Excellent for 100,000 miles $210 per month $0.20 per mile 13,800 Maximum $370 Buy Used 4 years Excellent for next 40,000 miles only $145 per month $0.20 per mile 13,800 Moderate Lease Midnight-Blue SUV $290 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $180 per month $0.20 per mile 13,800 Maximum SUI

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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