Lily is excited because she is getting a company car. Her employer is purchasing a car for $35,000. She will be getting the car in January 1st 2022. Her employer pays all of the operating expenses, which are expected to be about $3800 per year. Lily likes to drive and during the year drives a total of 37,000 km, of which 7,000 are for business. Which of the following statements is true? Her total taxable benefit is $17,100. Her standby charge is $3,800 and her operating benefit is $8,700. Her standby charge is $8,400 and her operating benefit is $3,081. None of the above are correct.
Lily is excited because she is getting a company car. Her employer is purchasing a car for $35,000. She will be getting the car in January 1st 2022. Her employer pays all of the operating expenses, which are expected to be about $3800 per year. Lily likes to drive and during the year drives a total of 37,000 km, of which 7,000 are for business. Which of the following statements is true? Her total taxable benefit is $17,100. Her standby charge is $3,800 and her operating benefit is $8,700. Her standby charge is $8,400 and her operating benefit is $3,081. None of the above are correct.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 9FPE
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Transcribed Image Text:Lily is excited because she is getting a company car. Her employer is purchasing a
car for $35,000. She will be getting the car in January 1st 2022. Her employer pays
all of the operating expenses, which are expected to be about $3800 per year. Lily
likes to drive and during the year drives a total of 37,000 km, of which 7,000 are for
business.
Which of the following statements is true?
Her total taxable benefit is $17,100.
Her standby charge is $3,800 and her operating benefit is $8,700.
Her standby charge is $8,400 and her operating benefit is $3,081.
None of the above are correct.
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