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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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