1.

A Rolls-Royce cost $235,000 when you bought it 4 years ago. Due to the enhancements you have made to the vehicle, it was recently appraised at $257,000. If you sell the car, you will pay a $20,560 luxury tax. Currently, you are leasing your Rolls-Royce for $1,500/month to a limousine company and paying average service fees on the car of $280/month. The cars annual registration with the Pennsylvania Department of Motor Vehicles costs $3,300. You are deciding whether to sell the Rolls or use it as your full-time family car. What value should you place on your Roll-Royce when analyzing the option of driving the car full time?

Multiple Choice

• $231,360

• $0

• $235,000

• $236,440

• $257,000