On March 1, 2014, Lana leases and places in service a passenger automobile. The lease will run for five years and the payments are $500 per month. During 2014, she uses her car 60% for business and 40% for personal activities. Assuming the dollar amount from the IRS table is $20, determine Lana's inclusion as a result of the lease.

Question

Quizplus · Accepted Answer

Lana's inclusion amount is calculated by multiplying the IRS table amount ($20) by the business use percentage (60%). Therefore, $20 * 60% = $12. Since the question asks for the inclusion amount, the closest option is $10.

On March 1, 2014, Lana Leases and Places in Service