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The Complete Idiot's Guide® To Accounting by Lita Epstein, Shellie L. Moore

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Valuing Benefits

Basically, when you try to value benefits the general rule is that the benefit should be valued at the fair market value (FMV). The FMV would be the amount the employee would have to pay a third party in an arm’s length transaction to buy or lease the benefit.
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DEFINITION
An arm’s length transaction is a transaction between two unrelated or unaffiliated parties or a transaction conducted between related or affiliated parties as if they were unrelated to avoid the appearance of a conflict of interest.
You must value any benefits by January 31 of the next year, so you will be able to report these benefits on the employee’s ...

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