Which of the following statements about the insurance verification process is a FALSE statement? A) Directly affects payment del
1 answer:
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Answer:
Check the explanation
Explanation:
As per publication 15-b Of employers tax guide fringe benefits provides you how to use lease value rules and when to use , The following question is answered according to it
Employee Name : Malcolm Figueroa
Annual Lease Method :
1 Fair market value of vehicle 35000
2 Annual lease value : 9250
3 Prorated Annual lease percentage 3600 / 22000 = 16.3636%
4 Prorated Annual lease Value: Annual lease value * Prorated Annual lease percentage = $
9250 * 16.3636% = 1513.633$
5 iF FUEL PROVIDED BY EMPLOYER ENTER MILE 3600 * 5.5cents = 198$
Total fuel charges = 198$
6 Total personal Use Taxable income 1513.633 + 198 = $1711.633
Kindly check the attached image below to see the well arranged accounting entry above.
First we will find the annual lease value from table given by using fmv of automobile i.e for 35000 its 9250
Now we will Multiple annual lease value by % of personal driven by employee
which is calculated by 3600/22000*100= 16.3636%
9250*16.3636%= 1513.633
So this the personal usage vehicle which will be added = $1513.633
And we will add the fuel cost to this amount which is = 3600*5.5cents= $198
total personal use taxable = $1711.633
