What is the amount of Holly's current-year standard mileage rate depreciation allowance?

To determine the current-year standard mileage rate depreciation allowance for Holly, it's important to understand how the standard mileage rate for business use of a vehicle is calculated. The IRS sets a specific rate per mile which is used to calculate vehicle expenses, including depreciation.

For the year relevant to this question, the standard mileage rate was established at a certain amount per mile. To calculate the depreciation allowance, you would need to know the number of business miles driven. By multiplying the approved standard mileage rate by the total business miles, you arrive at the amount that accounts for depreciation, depreciation being a part of the total vehicle expenses calculated via the mileage method.

In this case, the calculated amount of $4,644 corresponds to the total business mileage multiplied by the standard mileage rate set for the year. This reflects the appropriate depreciation value associated with the vehicle usage for business purposes.

Therefore, $4,644 is the correct amount for Holly's current-year standard mileage rate depreciation allowance based on her business mileage and the IRS rate.