Critical Thinking 4-2 (Static)

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 2,000 miles for personal use; and his employer paid for fuel, charging Malcolm 5.5 cents per mile. Malcolms employer offers him the option to use the cents-per-mile rule instead of the lease-value rule for 2021. (Use the following table for lease values.)

Required: Which method will yield the lower gross income for Malcolm? (Use 56 cents per mile in your calculations.) (Do not round intermediate calculations.)

What is the gross income to Malcolm using the cents-per-mile method?
Which method yields the lower gross income for Malcolm?