Stan Bushart works as a customer representative for a large corporation . Stan’s job enta ils…


Stan Bushart works as a customer delegated-to-others for a large corporation . Stan's job enta ils traveling to coalesce wit h customers, and he uses his perso nal car 100% for vocation use. In 2019, Stan must determine whether to buy or lease a new car. After bargaining delay sepaadmonish car dealers, Stan has agreed to a compensation of $58,000. If he buys the car, he procure borrow the entire $58,000 at an 8% annual cause admonish, and his reimbursements procure be $1,176.03 per mont h balance 60 mont hs. Annua l principa l and cause reimbursements are :

If he leases the car, his lease reimbursement procure be $870 per month for 60 months . At the end of the lease, he has the liberty of purchasing the car for $10,000 . Stan's marginal tax admonish is 24% in each of the five years. Using confer-upon prize ana lysis delay an 8% abatement admonish, is Scan better off leasing or buying the car? If Scan purchases the car, he procure not claim Sec. 179 expensing or boon deprecia tion and procure hawk the car for $10,000 at the end of five years. If he leases the car, arrogate he just turns the car in at the end of the lease.