On June 1, 2012, Norm leases a taxi and places it in service.The lease payments are $1,000 per month.Assuming the dollar amount from the IRS table is $241, determine Norm's inclusion amount.
A)$0.
B)$241.
C)$907.
D)$1,687.
E)None of the above.

Question

Quizplus · Accepted Answer

The inclusion amount is calculated when the fair market value of the leased vehicle exceeds the IRS threshold. Since the problem does not provide the fair market value or indicate it exceeds the threshold, the inclusion amount is $0.

On June 1, 2012, Norm Leases a Taxi and Places