Luis Billiot Is an Employee of Plato Designs and Drives

question 57

Multiple Choice

Luis Billiot is an employee of Plato Designs and drives a 2019 Toyota Camry as a company car. The fair-market value of the car is $25,499 and the lease value is $6,850, according to Publication 15-b. The car has been available for 300 days during the year and Luis has driven 5,500 of 28,350 miles for personal use.
He pays for his own fuel. What is the amount of the company-car fringe benefit that will appear on Luis's W-2, using the lease-value rule? (Do not round
Intermediate calculations, only round final answer to two decimal points.)

• A) $1,092.27
• B) $546.13
• C) $875.14
• D) $1,252.48

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Definitions:

Short-Run Average Cost

The total cost of production (fixed and variable costs) divided by the quantity produced, over the short term where some factors of production are fixed.

Output Quantity

The total amount of goods or services produced by a company or an economy in a specific period.

Marginal Cost

The growth in total expenses incurred from making one more unit of a product or service.

High-Quality Hydraulic

Refers to hydraulic systems or components that are characterized by superior performance, durability, and efficiency.