AP 3-5 Taxable Automobile Benefits

It is the policy of Caplan Ltd. to provide automobiles to four of its senior executives. The cars may be used for both employment purposes as well as personal travel. When it is not being used by the employee, the company requires the cars to be returned to the companys premises.

For 2021, the details regarding the use of these cars is as follows:

Ms. Barbara Caplan Barbara is provided with a BMW 300 Series, which the company leases for $650 per month. This amount includes $110 per month for insurance. She drives a total of 57,000 kilometers of which 21,000 is employment purposes and 36,000 for personal use. Operating costs, all of which were paid by the company, totalled $11,300. Because of her extensive personal use of the vehicle, Barbara pays the company $200 per month. The vehicle is available to her for 12 months during the current year.

Mr. Sheldon Caplan Sheldon is provided with a Lexus GS, which the company leases for $1,100 per month. No insurance is included in this payment. During the current year, Sheldon drives the car a total of 34,300 kilometers, of which 32,600 are employment purposes and 1,700 for personal use. The operating costs average $0.27 per kilometer and are paid for by the company. The car is available to Sheldon for eight months during the current year.

Ms. Melissa Caplan Melissa is provided with a Mercedes S Class Sedan. The company paid $175,000 for this car two years ago. During the current year, the car was driven 62,000 kilometers, of which 23,000 are for employment purposes and 39,000 for personal use. Operating costs, all of which were paid by the company, totalled $27,500. The car was available to Melissa for 11 months during the current year.

Mr. Jerome Caplan Jeromes car is an Audi A5 purchased by the company for $74,200. During the 10 months that the car was available to Jerome during the current year, he drove a total of 93,000 kilometers, of which 24,000 are for employment purposes and 69,000 for personal use. Operating costs, all of which were paid by the company, totalled $19,400.

Required: Calculate the minimum taxable benefit that will accrue to each of these executives as the result of having the cars supplied by the company. Ignore all GST/PST/HST implications.

This is the new version 2021-2022, so the numbers will be different from previous versions. Above all, don't use handwriting because sometimes I can't see the words clearly. Btw, this problem is related to Taxation. Thank you for your help!