LO 4-4 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. Using the lease value rule, what is the valuation of Blaine’s company car benefit?