Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Critical Thinking 4-1 (Algo) Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Inc., During 2019, he was issued a company car with

image text in transcribed
image text in transcribed
Critical Thinking 4-1 (Algo) Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Inc., During 2019, 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 2,900 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 2019? (Use the following table for lease values.) (Round your intermediate calculations and final answers to 2 decimal places.) Carefree Pools and Spas, Inc. Worksheet to Calculate Personal use of Company Vehicle (Lease-Value Rule) Employee Name: Malcolm Figueroa Annual Lease Method: 1. Fair Market Value of Vehicle: 2. Annual Lease Value 3. Prorated Annual Lease Percentage: 35,000.00 9,250.00 $ % $ 4. Prorated Annual Lease Value: Annual Lease Value Prorated Annual Lease Percentage % $ 0 Employer Charge Per Mile $ Personal Miles 5. If fuel is provided by the employer, enter personal miles Total fuel charge for the personal miles driven $ 0 www wy value of $35,000. He drove a total of 22,000 miles; used the car for 2,900 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 2019? (Use the following table for lease values.) (Round your intermediate calculations and final answers to 2 decimal places.) Carefree Pools and Spas, Inc. Worksheet to Calculate Personal use of Company Vehicle (Lease-Value Rule) Employee Name: Malcolm Figueroa Annual Lease Method: 1 Fair Market Value of Vehicle: 2. Annual Lease Value: 3. Prorated Annual Lease Percentage: $ $ 35,000.00 9,250.00 % os 4. Prorated Annual Lease Value Annual Lease Value Prorated Annual Lease Percentage $ $ 0.00 Personal Miles Employer Charge Per Mile = $ $ 0.00 5. If fuel is provided by the employer, enter personal miles: Total fuel charge for the personal miles driven 6. Total Personal Use Taxable income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions