Question

Joseph operates a consulting business. He uses his personal credit card for both business and personal use. The total finance charges paid for the year were $957. Joseph's total business charges on the card were 41% of all the charges. What amount of interest expense can be deducted on Joseph's Schedule C

Answer 1

$392.37

Explanation:

Data provided in the question:

The total finance charges paid for the year = $957

Joseph's total business charges on the card = 41% of all the charges

Now,

The amount of interest expense can be deducted on Joseph's Schedule C will be the Joseph's total business charges on the card

Therefore,

The amount of interest expense can be deducted on Joseph's Schedule C

= 41% of $957

= 0.41 × $957

= $392.37