Question
All questions follow Canadian Taxing Systems and are in CAD. Question 1 Peterman Inc. provides an automobile to Ms. Winters for her to use in
All questions follow Canadian Taxing Systems and are in CAD. Question 1
- Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties.
- Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Petermans premises so that it can be used by other employees.
- The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA.
- During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year.
Required: Ignore all GST/PST/HST implications. Indicate the minimum taxable benefit that would be allocated to Ms. Smith in each of the following Cases:
Case A Ms. Winters has use of the car for 11 months of the year. Personal use during the year totals 8,000 kilometers.
Case B Ms. Winters has use of the car for 9 months of the year. Personal use during the year totals 15,000 kilometers.
Case C Ms. Winters has use of the car for 7 months of the year. Employment use during the year totals 9,000 kilometers.
6. Ms. Young is divorced and maintains a residence far from her former spouse. She has custody of the 2 children from the marriage. They are aged 9 and 12 and in good health. They both earn $750 from paper routes. Her Net Income for Tax Purposes is $72,000, all of which is spousal support payments.
Q.1 Show your work here Enter your final answer here Case A Standby Charge Ankit: Enter the final answer here for standby charge Operating Cost Benefit Ankit: Insert the final asnwer here for operating cost benefit Total Benefit Ankit: Insert the final answer here for total benefit Show your work here Enter your final answer here Case B Standby Charge Ankit: Enter the final answer here for standby charge Operating Cost Benefit Ankit: Enter the final answer here for operating cost benefit Total Benefit Ankit: Enter the final answer here for Total benefit Show your work here Enter your final answer here Case C Standby Charge Ankit: Enter the final answer here for standby charge Operating Cost Benefit Ankit: Enter the final answer here for operating cost benefit Total Benefit Ankit: Enter the final answer here for Total benefit Q.1 Show your work here Enter your final answer here Case A Standby Charge Ankit: Enter the final answer here for standby charge Operating Cost Benefit Ankit: Insert the final asnwer here for operating cost benefit Total Benefit Ankit: Insert the final answer here for total benefit Show your work here Enter your final answer here Case B Standby Charge Ankit: Enter the final answer here for standby charge Operating Cost Benefit Ankit: Enter the final answer here for operating cost benefit Total Benefit Ankit: Enter the final answer here for Total benefit Show your work here Enter your final answer here Case C Standby Charge Ankit: Enter the final answer here for standby charge Operating Cost Benefit Ankit: Enter the final answer here for operating cost benefit Total Benefit Ankit: Enter the final answer here for Total benefitStep by Step Solution
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