Dee began leasing a business auto on January 1, 2022. The lease terminates on April 30, 2024. The fair market value of the car is $66,500. Dee uses the auto 75% for business. The 2022 lease-income inclusion table indicates an inclusion amount of $14 for a vehicle with a FMV of $66,500. How much is the 2022 lease income inclusion that Dee must report on her Schedule C? OA. $0 OB. $14 O C. $11 O D. $132
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- On July 1, 2019, a taxpayer enters into a 36-month lease. The terms of the lease require the taxpayer to pay $1,000 a month. Based on the value of the automobile, the inclusion amounts for years 1 through 3 are $314, $590, and $602, respectively. If the taxpayer uses the car 70% for business, what net amount can be deducted for lease expense in 2020? $7,987 $5,705 $11,587 $12,000 $4,920On January 1, 2019, Stacie signed a lease agreement with Amy. Amy will use the equipment and make ten annual payments of $25,000 beginning December 31, 2019. The lease is considered to be a finance lease. When reading the Amy income statement, you would expect to find which of the following accounts? A.Rent Revenue B.Rental Expense C.Interest Revenue D.Interest ExpenseOn May 1, 2022, Ella leases her condo to Fitz for a 12-month lease period starting May 1 for $1,000 per month. Ella requires that Fitz pay first month’s rent, last month’s rent and a $1,000 security deposit (total $3,000) prior to turning over the keys to Fitz. The security deposit is refundable as long as Fitz abides by the terms of the lease agreement. Compute the amount of gross rental income Ella will recognize in 2022
- Ravis Rent-A-Car Company leases a car to Ira Reem, an employee, on January 1, 2019. The term of the noncancelable lease is 4 years. The following information about the lease is provided: 1. Title to the car passes to Ira on the termination of the lease with no additional payment required by the lessee. 2. The cost and fair value of the car is $8,400. The car has an economic life of 5 years. 3. The interest rate implicit in the lease is 10%. 4. It is probable that Ravis will collect the lease payments. 5. Equal annual lease payments are due at the end of each year. 3a. Prepare the journal entries for 2019. PAGE 2019 GENERAL JOURNAL DATE ACCOUNT TITLE DEBIT CREDIT 1 2 3 4 5 6 7 3b. Prepare the journal entries for 2020. PAGE 2020 GENERAL JOURNAL DATE ACCOUNT TITLE DEBIT…Ravis Rent-A-Car Company leases a car to Ira Reem, an employee, on January 1, 2019. The term of the noncancelable lease is 4 years. The following information about the lease is provided: 1. Title to the car passes to Ira on the termination of the lease with no additional payment required by the lessee. 2. The cost and fair value of the car is $8,400. The car has an economic life of 5 years. 3. The interest rate implicit in the lease is 10%. 4. It is probable that Ravis will collect the lease payments. 5. Equal annual lease payments are due at the end of each year. Prepare a table summarizing the lease receipts and interest income earned by the Ravis Rent-A-Car for the 4-year lease term. Additional Instructions Ravis Rent-A-Car Company Summary of Lease Payments Received and Interest Income Earned (by Interest Method) 1 Date Annual Lease Payments Received Interest Income at 10% on Lease Receivable Reduction of Lease Receivable Lease…On December 1, 2021, Carlos entered into a lease on a building for use in his business for $1,000 per month. Under the lease terms, Carlos pays 18 months' rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2021? a.$1,000 b.$18,000 c.$13,000 d.$12,000
- On January 1, 2020, Mr. Ray Holland leases an automobile to be used 100 percent of the time in his unincorporated business. The lease cost is $940 per month. The manufacturer's suggested list price for the automobile is $101000. Mr. Holland makes no down payment and no refundable deposits. Determine his maximum deduction for lease payments for 2020. Ignore GST and PST considerations.On December 1, 2020, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months’ rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2020? a. $18,000 b. $1,000 c. $13,000 d. $12,000On March 1, 2023, Dak Prescott leases and places in service a passenger automobile. The lease will run for five years and the payments are $500 per month. During 2023, he uses his car 60% for business and 40% for personal activities. Assuming the dollar amount from the IRS table for auto leases is $70, determine Dak's gross income attributable to the lease. The car was in service for 305 out of 365 days. a. $0 b. $35 c. $59 d. $70
- Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental Annual real property tax assumed and paid by Claude 50,000 Security deposit 300,000 200,000| Lease term 12 years On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 2020. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2018 and 2019, respectively. 600,000; 50,000 650,000; 0 850,000; 50,000 350,000; 350,000Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental 300,000 Annual real property tax assumed and paid by Claude 50,000 Security deposit 200,000 Lease term 12 years On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 202O. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2020 assuming the company opted to report income from improvement using the spread-out method.On January 2, 2019, Min leased an office space for an annual rental of P600,000 payable every yearend. The lease term is for five years and Min has the option to extend the lease for another three years. The same annual rent shall be payable if the option is exercised, however, Min did not signify to exercise said option in 2019. The implicit interest rate on the lease is 12%. On January 1, 2021, Min decided to extend the lease when the implicit interest rate is 10%. How much is interest expense for 2021? How much is the depreciation expense for 2021?