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cricket20 [7]
3 years ago
10

Brent Bishop is the vice president of operations for Southern Sweets Bakery. He drives a 2017 Toyota Prius Prime as his company

car, and it has a fair market value of $37,500. The annual lease for the vehicle is $9,750. He reported driving 34,750 miles during 2018, of which 20 percent were for personal reasons. The company pays his fuel and charges him five cents per mile for fuel charges. Required:
Using the lease value rule, what is the valuation of Brent’s company car benefit?
Business
1 answer:
denis23 [38]3 years ago
4 0

Answer:

$2,297.50

Explanation:

The annual lease value for Brent's Toyota Prius is $9,750. Since he uses the car approximately 20% of the time for personal use, then Brent's share of the annual lease is = $9,750 x 20% = $1,950

This 20% of personal use represents 6,950 miles (= 34,750 miles x 20%), if the company charges him five cents per mile, then Brent is receiving  $347.50 (= 6,950 x $.05 ) for personal fuel use.

Brent's total taxable benefit = $1,950 +  $347.50 = $2,297.50

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The role of a _____ is to provide direction and funding for a project.
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On June 1, 20--, a depreciable asset was acquired for $5,460. The asset has an estimated useful life of five years (60 months) a
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$4823

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3 years ago
Ms. Pike, who lives in California, traveled to Oregon to purchase gold jewelry for $16,000. California has a 7.5 percent sales a
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7 0
3 years ago
One year ago, the Jenkins Family Fun Center deposited $4,800 into an investment account for the purpose of buying new equipment
posledela

Answer:

$25,778

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Thus, after four years, the Jenkisn Family Fun Center will have $25,778 to buy the equipment.

3 0
3 years ago
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