On March 1,2013,Lana leases and places in service a passenger automobile.The lease will run for five years and the payments are $500 per month.During 2013,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 by the business use percentage: $20 * 60% = $12. Since the inclusion amount is based on the business use, the correct choice is $10, which is the closest option to the calculated amount.

On March 1,2013,Lana Leases and Places in Service a Passenger