Business, 02.09.2020 18:01 ashtynbursiaga
Willie Lohmann travels from city to city for business. Every other year he buys a used car for about $15,000. The dealer allows about $8000 as a tradein allowance, so Willie spends $7000 every other year for a car. Willie keeps accurate records of his expences, which total 32.3 per mile. Willie's employer has two plans to reimburse car expenses: Actual expenses: Willie will recieve all his operating expenses, and $3500 each year for the car's decline in value. Standard mileage rate: Willie will recieve 56.5 per mile but no operating expenses and no depreciation allowance. If Willie travels 18,000 miles per year, which method gives him the larger reimbursement? At what annual mileage do the two methods give the same reimbursement?
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Willie Lohmann travels from city to city for business. Every other year he buys a used car for about...
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