Blaine is the vice president of operations for Southern Sweets Baker a fair market value of $41,500. The vehicle's prorated annual lease va miles during 2023, of which 20 percent were for personal reasons. T charges. Required: Using the lease value rule, what is the valuation of Blaine's company Note: Do not round intermediate calculations and round your final Valuation of Blaine's company car benefit
Blaine is the vice president of operations for Southern Sweets Baker a fair market value of $41,500. The vehicle's prorated annual lease va miles during 2023, of which 20 percent were for personal reasons. T charges. Required: Using the lease value rule, what is the valuation of Blaine's company Note: Do not round intermediate calculations and round your final Valuation of Blaine's company car benefit
Chapter6: Business Expenses
Section: Chapter Questions
Problem 22P
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![Blaine is the vice president of operations for Southern Sweets Bakery. Blaine drives a 2023 Toyota Prius as his company car, and it has
a fair market value of $41,500. The vehicle's prorated annual lease value per Publication 15-B is $10,750. Blaine reported driving 34,750
miles during 2023, of which 20 percent were for personal reasons. The company pays for fuel and charges five cents per mile for fuel
charges.
Required:
Using the lease value rule, what is the valuation of Blaine's company car benefit?
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Valuation of Blaine's company car benefit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfff72d7-573d-4332-bfc5-7070a4795d63%2F0002234c-0866-4fce-b2ea-e0963d877ca1%2Fqnvgs3i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Blaine is the vice president of operations for Southern Sweets Bakery. Blaine drives a 2023 Toyota Prius as his company car, and it has
a fair market value of $41,500. The vehicle's prorated annual lease value per Publication 15-B is $10,750. Blaine reported driving 34,750
miles during 2023, of which 20 percent were for personal reasons. The company pays for fuel and charges five cents per mile for fuel
charges.
Required:
Using the lease value rule, what is the valuation of Blaine's company car benefit?
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Valuation of Blaine's company car benefit
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