Tim Is an Employee of Lenux Corporation

question 39

Multiple Choice

Tim is an employee of Lenux Corporation.Lenux purchased a car with a fair market value of $50,000 for use by Tim on his business trips.The annual lease-value of this vehicle is $13,250.In the current year, 70 percent of the miles driven by Tim in this vehicle were on business and 30 percent were for his personal use.How much, if any, taxable income does Tim have from his use of this vehicle?

• A)0
• B)$3,975
• C)$13,250
• D)$15,000

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Definitions:

Flexible Benefit Plans

Employee benefit programs that allow individuals to choose from a variety of offerings to create a package tailored to their needs.

Skilled Staff

Individuals who have specialized training, expertise, or abilities that contribute to the performance of specific job functions.

Provincially Governed

Operated or regulated by the government of a province or state rather than by the national government.

Financial Protection

Measures or strategies implemented to safeguard individuals, organizations, or countries against financial loss or hardship.