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Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $2,800 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 21,400 miles (a combination of business and personal travel). (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
a. Ryan can provide written documentation of the business purpose for trips totaling 6,420 miles. What business expense amount can Ryan deduct (if any) for these trips?
b. Ryan estimates that he drove approximately 2,225 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,450 miles. What business expense amount can Ryan deduct (if any) for these trips?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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