On March 1, 2019, Lana leases and places in service a passenger automobile.The lease will run for five years and the payments are $500 per month.During 2019, she uses her car 60% for business and 40% for personal activities.Assuming the dollar amount from the IRS table for auto leases is $70, determine Lana's gross income attributable to the lease.

Question

Quizplus · Accepted Answer

The gross income attributable to the lease is calculated by taking the IRS table amount ($70) and multiplying it by the percentage of personal use (40%). Therefore, $70 * 40% = $28. However, since the correct calculation actually results in $28 and this option is not provided, it appears there was a mistake in the interpretation of the question or in the provided options. Based on the closest available option, $35 (B) would be considered the "correct" choice given the options, but it's important to note the discrepancy in the calculation.

On March 1, 2019, Lana Leases and Places in Service