An individual, named "Michael", has been provided with a company vehicle by his employer. The automobile is valued at $40,000 (including HST). The vehicle was available to Michael for utilization throughout the previous calendar year, and no reimbursement was made by Michael to his employer for expenses associated with the use of the automobile. The employer has specified that the vehicle is required for business use, and the personal-use of the company-owned automobile for the entire year was only 750 kilometres per month on average. Additionally, it has been established that the business-use was at least 50% of the total kilometres travelled. As per the Canadian personal income tax system, when an employer provides an employee with a company car, the employee is considered to have received a taxable benefit. The amount of this benefit is determined by the "standby charge". Given the above information, determine the amount of the standby charge for Michael, taking into account the reduced standby charge eligibility based on the business-use criteria.

9600

4320

He can elect to use one-third of his standby charge as his operating cost benefit

$4,000