Kristen Lu purchased a used automobile for $11,450 at the beginning of last year and incurred the following operating costs: $ 2,290 $ 1,200 $ 600 $ 310 $ 0.13 per mile Depreciation ($11,450 ÷ 5 years) Insurance Garage rent Automobile tax and license Variable operating cost The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $2,290. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

Kristen Lu purchased a used automobile for $11,450 at the beginning of last year and incurred the following operating costs: $ 2,290 $ 1,200 $ 600 $ 310 $ 0.13 per mile Depreciation ($11,450 ÷ 5 years) Insurance Garage rent Automobile tax and license Variable operating cost The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $2,290. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 22P

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