Which fringe benefit valuation rule(s) permit employees to use a company vehicle for personal purposes as a fringe benefit? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Question

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The lease-value rule and cents-per-mile rule are both methods that allow for the valuation of personal use of a company vehicle as a fringe benefit. The lease-value rule uses the annual lease value of the vehicle to determine the amount that is added to the employee's income, while the cents-per-mile rule uses the IRS standard mileage rate to calculate the value of personal use.

Which Fringe Benefit Valuation Rule(s) Permit Employees to Use a Company