Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Incorporated. In 2021, he was issued a company car with a fair market value of $35,000. He drove a total of 22,000 miles; used the car for 3,700 miles for personal use; and his employer paid for fuel, charging Malcolm 5.5 cents per mile. Required: Under the lease-value rule, what is the amount that must be added to Malcolm's gross pay for 2021? (Use the following table for lease values.) (Round "Employer Charge Per Mile" to 3 decimal places. Round other intermediate calculations and final answers to 2 decimal place.) Employee Name: Malcolm Figueroa Annual Lease Method: 1. Fair Market Value of Vehicle: 2. Annual Lease Value: 3. Prorated Annual Lease Percentage: 3. Prorated Annual Lease Percentage: 4. Prorated Annual Lease Value: 4. Prorated Annual Lease Value: 5. If fuel is provided by the employer, enter personal miles: 5. Total fuel charge for the personal miles driven: 6. Total Personal Use Taxable Income: Carefree Pools and Spas, Incorporated Worksheet to Calculate Personal Use of Company Vehicle (Lease-Value Rule) Annual Lease Value Personal Miles Prorated Annual Lease Percentage Employer Charge Per Mile
Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Incorporated. In 2021, he was issued a company car with a fair market value of $35,000. He drove a total of 22,000 miles; used the car for 3,700 miles for personal use; and his employer paid for fuel, charging Malcolm 5.5 cents per mile. Required: Under the lease-value rule, what is the amount that must be added to Malcolm's gross pay for 2021? (Use the following table for lease values.) (Round "Employer Charge Per Mile" to 3 decimal places. Round other intermediate calculations and final answers to 2 decimal place.) Employee Name: Malcolm Figueroa Annual Lease Method: 1. Fair Market Value of Vehicle: 2. Annual Lease Value: 3. Prorated Annual Lease Percentage: 3. Prorated Annual Lease Percentage: 4. Prorated Annual Lease Value: 4. Prorated Annual Lease Value: 5. If fuel is provided by the employer, enter personal miles: 5. Total fuel charge for the personal miles driven: 6. Total Personal Use Taxable Income: Carefree Pools and Spas, Incorporated Worksheet to Calculate Personal Use of Company Vehicle (Lease-Value Rule) Annual Lease Value Personal Miles Prorated Annual Lease Percentage Employer Charge Per Mile
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Incorporated. In 2021, he was issued a company car with
a fair market value of $35,000. He drove a total of 22,000 miles; used the car for 3,700 miles for personal use; and his
employer paid for fuel, charging Malcolm 5.5 cents per mile.
Required:
Under the lease-value rule, what is the amount that must be added to Malcolm's gross pay for 2021? (Use the following table
for lease values.) (Round "Employer Charge Per Mile" to 3 decimal places. Round other intermediate calculations and
final answers to 2 decimal place.)
Employee Name: Malcolm Figueroa
Annual Lease Method:
1. Fair Market Value of Vehicle:
2. Annual Lease Value:
3. Prorated Annual Lease Percentage:
3. Prorated Annual Lease Percentage:
4. Prorated Annual Lease Value:
4. Prorated Annual Lease Value:
5. If fuel is provided by the employer, enter personal miles:
5. Total fuel charge for the personal miles driven:
6. Total Personal Use Taxable Income:
Carefree Pools and Spas, Incorporated
Worksheet to Calculate Personal Use of Company Vehicle
(Lease-Value Rule)
Annual Lease Value
Personal Miles
Prorated Annual Lease Percentage
Employer Charge Per Mile
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