Luis Billiot Is an Employee of Plato Designs and Drives

question 47

Multiple Choice

Luis Billiot is an employee of Plato Designs and drives a 2017 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 the 28,350 miles for personal use.He pays for his own fuel.What is the percentage of miles driven for personal use,using the lease-value rule? (Do not round intermediate calculations,only round final answer to two decimal points. )

• A)82.19%
• B)14.50%
• C)19.40%
• D)17.64%

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Definitions:

Noncash Investing

Transactions that involve the acquisition or disposal of long-term assets without the immediate use of cash, often reflected in the investing activities section of the cash flow statement.

Financing Activities

Actions and decisions related to managing the company's funding structure, including securing loans, issuing stock, and making dividend payments to shareholders.

Direct Method

A financial accounting technique used primarily in the preparation of cash flow statements to present payments and receipts as gross amounts.

Total Assets Ratio

Total assets ratio is a financial metric used to assess a company's efficiency in using its assets to generate revenue.