Ben is considering acquiring a new automobile that he will use 100% for business. The purchase price of the automobile would be $64,500. If Ben leased the car for five years, the lease payments would be $875 per month. Ben will acquire the on January 1, 2020. The inclusion dollar amounts from the IRS table for the next five years are $63, $140, $208, $251, and $289. Ben wants to know the effect on his adjusted gross income of purchasing versus leasing the car for the next five years. He does not claim any available additional first-year depreciation. Write a letter to Ben to present your calculations. Then prepare a memo for the tax files on these matters. Ben's address is 150 Avenue I Memphis, TN 80800

Please clearly explain the calculations and explain how to write the letter and memo.