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Aleks04 [339]
2 years ago
11

Lakiesha is an employee who drives a 2017 Buick Verano as a company car. The fair-market value of the car is $28,545. She has be

en given the choice to have her fringe benefit reported on her W-2 either using the lease-value rule or the cents-per mile rule. According to Publication 15-b, the lease value is $7,750. She has driven 4,500 miles for personal use and 31,250 miles in total during the year. The car has been available for use on 200 days during the year. Lakiesha's employer pays for all fuel. What method and valuation will yield the lowest fringe-benefit amount for Lakiesha
Business
1 answer:
egoroff_w [7]2 years ago
7 0

Answer:

using the lease value rule, the employee's fringe benefits will be lower = $859.01.

Explanation:

The cents per mile rule for calculating fringe benefits = total number of miles driven for personal use x standard deduction = 4,500 x $0.58 = <u>$2,610</u>

using the lease value rule:

Annual lease value = publication 15-b value x amount of days available per year = $7,750 x (200/365) = $4,246.58

$4,246.58 x (4,500 miles / 31,250 miles) = $611.51

gas benefit = 4,500 x $0.055 = $247.50

total fringe benefits = $611.51 + $247.50 = <u>$859.01</u>

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The correct answer is letter "A": innovative.

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4 0
2 years ago
Fizzzle Inc. sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should thi
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The gain is subtracted from net income in the operating activities section

Explanation:

Given that

Sale value of an equipment = $230,000

And, the gain on the sale = $45,000

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4 0
1 year ago
Raul is the Chief Operating Officer (COO) of Black Mesa Inc., a firm that produces handcrafted kitchen tables for both the resid
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Being able to produce goods at a lower cost is a good thing for a business because it means that the business can be able to sell at a lower price and therefore get more customers and increase overall profitability.

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8 0
1 year ago
The capital allocation process involves the transfer of capital among different entities that include individuals, small busines
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Answer:

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2 years ago
Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $ 2
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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Budgeted Sales:

January $ 237,400

February 251,400

March 336,600

Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible.

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Total= 272,356.8

4 0
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