River, president of Miller Custom Coffee Roasters, drives a 2022 Mercedes E300 with a fair market value of $58,500. The lease valueis $15,250. The odometer started at 730 and was reported at 31,330 at the end of the year. The car was available all of 2023. Riverreported driving 30,600 miles during 2023, of which 10,400 were for personal reasons. The company pays all fuel and charges fivecents per personal mile for fuel costs.Required:What is River's 2023 valuation using the lease value rule?Note: Round "Percent of Personal Use" to one decimal place and round your final answer to 2 decimal places.Total personal use taxable income

River's 2023 Valuation using the Lease Value Rule:Calculate Percent of Personal Use:(Personal Miles…

Answered: River, president of Miller Custom…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. Required: Using the lease value rule, what is the valuation of Blaine's company car benefit? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Valuation of Blaine's company car benefit
Quinn is an employee of Caribbean Imports. His company car is a 2022 Toyota Prius LXE with a fair-market value of $30,000 and a lease value of $8,250, according to Publication 15-b. During the year, Quinn drove 36,953 miles, of which 6,822 were for personal use. The car was available for use on 250 of the days during the year. All gasoline was provided by the employer and is charged back to Quinn at $0.0585 per mile. What is the amount of the company-car fringe benefit that will appear on Quinn's W-2, using the lease-value rule?Note: Do not round intermediate calculations, only round final answer to two decimal points. A. $375.21B. $1,043.19C. $1,442.28D. $5,650.68
During 2022, BLC Corporation leased a car for its employee Carmen, at a monthly cost of $983, including all taxes. BLC paid $7043 for the operating costs of the car during 2022. Carmen used the car for 11 months during the year and during the months of non-use, it was returned to BLC's premises. During the year, he drove the car a total of 26031 kilometers of which 16716 kilometers were for personal travel and the remainder was for employment-related use. Calculate Carmen's total taxable benefit arising from the use of the car in 2022.
Quinn is an employee of Caribbean Imports. Quinn’s company car is a 2022 Toyota Prius LXE with a fair-market value of $30,000 and a lease value of $8,250, according to Publication 15-b. During the year, Quinn drove 36,953 miles, of which 6,822 were for personal use. The car was available for use on 250 of the days during the year. All gasoline was provided by the employer and is charged back to Quinn at $0.055 per mile. What is the percentage of personal use by Quinn? Note: Do not round intermediate calculations, only round final answer to two decimal points. Multiple Choice 68.49% 35.97% 18.46% 6.64%
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 3,700 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 2021? (Use the following table for lease values.) (Round "Employer Charge Per Mile" to 3 decimal places. Round other intermediate calculations and final answers to 2 decimal place.) Employee Name: Malcolm Figueroa Annual Lease Method: 1. Fair Market Value of Vehicle: 2. Annual Lease Value: 3. Prorated Annual Lease Percentage: 3. Prorated Annual Lease Percentage: 4. Prorated Annual Lease Value: 4. Prorated Annual Lease Value: 5. If fuel is provided by the employer, enter personal miles: 5. Total fuel charge for the personal miles driven: 6. Total Personal Use Taxable Income: Carefree…
Alec is an employee who drives a 2021 Ford C-Max with a fair-market value of $32,000. He has been given the choice to have the fringe benefit reported on his W-2 either using the lease-value rule or the cents-per mile rule. The lease value is $8,750, according to Publication 15-b. Alec drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and the amount for personal use was charged back to Alec at $0.055 per mile. If the car was available for 175 days during the year, what is the prorated annual lease percentage, using the lease-value rule? (Do not round intermediate calculations, only round final answer to two decimal points.) Multiple Choice 47.95% 48.61% 52.05% 69.75%
Merville is a dealer in real properties. Merville requires 20% downpayment, and the balance is payable over 36 monthly instalments starting on the last day of the month following the month of sale. Merville sold properties in 2019 and 2020 with terms as follows: House and Lot No. 1 was sold for P1,350,000 on November 11, 2019. House and Lot No. 2 was sold for P1,800,000 on July 5, 2020. Both properties were sold at a gross profit rate of 40% based on the selling price. Compute Merville’s gross income subject to income tax in 2019 and 2020, respectively. P120,000;P720,000 P540,000;P720,000 P120,000;P846,000 P540,000;P846,000
Rookie Cookies wants to rent a new bakery space to operate their business at $10,000 a year for the next 5 years. The rent agreement specifies that a $4,000 security deposit needs to be paid by Rookie up-front. In year 4 of the rental agreement, a one-time machinery maintenance fee of $6,000 will need to be paid by Rookie. When the rental agreement expires, Rookie feels they cam sell the machinery they maintained during the rental agreement for $7,000. Assuming a 10% ra of return, what is the present value (or cost) of the bakery space rental decision? Present Value of a $1 Present Value of an Annuity of $1 Period 10% Period 10% 0.909 1 0.909 2 0.826 0.751 0.683 0.621 3 345 O-$50,355 O-$41,297 O-$41,661 O-$18,655 2 3 45 1.736 2.487 3.170 3.791
Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2022. She drove 10,000 miles in the first half of the year and 10,000 miles in the second half of the year. This represents about 75% of the auto's use. She has receipts as follows: parking(business only) $500 tolls (business only) 200 Repairs $1000 Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct A) $0. B) $12,000. C) $11,825. D) $13,000.
On October 1, 2019, Alharam sold and delivered 3 doors to a builder for $40,000. The builder plans to install it in one of its “Parade of Homes” houses. Alharam accepted a 5-year, zerointerest bearing note with face amount of $53,240. The doors have cost of $25,500. An interest rate of 10% is an appropriate market rate of interest for this customer. What's the entries of this transactionand i wana explain of the entries
Mike is an independent contractor in 2021. Mike attends a professional trade association in Los Angeles. He spends three days at the meeting and two days vacationing before the meeting. Mike's total expenses for the entire five days include the following: Airfare to and from LA $450 Meals ($50 per day) $250 Hotel ($100 per day) $500 Entertainment of customers (business is discussed) $500 Total = $1700 a. How much can Mike deduce for business related expenses for 2021? b. How would your answers change if Mike spend two days at the meeting and three days vacationing?
Kraft Company made the following journal entry in late 2025 for rent received on property it leases to Danford Corporation. Cash 150,000 Unearned Rent Revenue 150,000 The payment represents rent for the years 2026 and 2027, the period covered by the lease. Kraft is a cash basis taxpayer. Kraft has income tax payable of $230,000 at the end of 2025, and its tax rate is 25%. What amount of income tax expense should Kraft Company report at the end of 2025? 3) _______ A) $267,500 B) $211,250 C) $192,500 D) $117,500

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