On March 1, 2017, Lana Leases and Places in Service

question 36

Multiple Choice

On March 1, 2017, Lana leases and places in service a passenger automobile. The lease will run for five years and the payments are $500 per month. During 2017, 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.

• A)$0
• B)$35
• C)$59
• D)$70
• E)None of the above

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Definitions:

Profit Goal

A specific financial target for net income that a company aims to achieve within a certain period.

Pricing Objective

The goals that a company wants to achieve through the pricing of its goods or services, which may include maximizing profit, capturing market share, or discouraging new entrants.

Market Share

The share of overall market sales volume taken by a particular brand, product, or company.

Pricing Objective

Pertains to the goals a company aims to achieve through its pricing strategies, such as maximizing profit, capturing market share, or supporting product positioning.