Mr. Jonathan is required by his contract of employment to use his own car in the performance of his employment duties and to pay for all expenses. Mr. Jonathan leased a BMW from Expensive Cars Unlimited. The following facts relate to the leased car:

Mr. Jonathan was not reimbursed for any portion of the lease cost. Mr. Jonathan lives in a province which has an HST rate of 13%.

REQUIRED
Determine the allowable lease cost which qualifies for a deduction under section 67.3 in 2016 before prorating for employment use. Ignore the effects of the leap year.

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Lease period Lease cost per month including HST Manufacturer's list price, excluding HST Jan. 1, 2016 to Dec. 31, 2017 $800 $50,000