Brent Bishop is the vice president of operations for Southern Sweets Bakery. He drives a 2021 Toyota Prius as his company car, and it has a fair market value of $41,500. The prorated annual lease value per Publication 15-b for the vehicle is $10,750. He reported driving 34,750 miles during 2021, 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? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Valuation of Brent's company car benefit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Brent Bishop is the vice president of operations for Southern Sweets Bakery. He drives a 2021 Toyota Prius as his company
car, and it has a fair market value of $41,500. The prorated annual lease value per Publication 15-b for the vehicle is $10,750.
He reported driving 34,750 miles during 2021, 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? (Do not round intermediate calculations
and round your final answer to 2 decimal places.)
Valuation of Brent's company car benefit
Transcribed Image Text:Brent Bishop is the vice president of operations for Southern Sweets Bakery. He drives a 2021 Toyota Prius as his company car, and it has a fair market value of $41,500. The prorated annual lease value per Publication 15-b for the vehicle is $10,750. He reported driving 34,750 miles during 2021, 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? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Valuation of Brent's company car benefit
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