You are working as a chief financial officer (CFO) at a small start-up CPA review company. The business’s
advertising plan calls for representatives to drive to local campuses to interact with students on the campus (in
a post-pandemic world). As CFO you have been asked to prepare a memo to the CEO recommending a plan
for acquiring two business vehicles with "vinyl wraps" advertising the exam prep business. So far, 2021 was a
bad year for business due to the loss of in-person classes. Net income is expected to be in the amount of
$150,000. Forecasting suggests 2022 will be the best year ever with net income exceeding $500,000.
The CEO also wants to also use one of the wrapped vehicles for a daily driver since he believes students will
see it “around town” and want to know more about the company.
Write a 1-2 page memo advising on a tax efficient plan for acquiring the two vehicles.
Sample Solution