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Employee X has full use of an employer-owned vehicle. Details are provided below: Vehicle was purchased for the employee use in: mid-December Original cost of
Employee X has full use of an employer-owned vehicle. Details are provided below:
Vehicle was purchased for the employee use in: mid-December
Original cost of the vehicle to the employer, including HST: $25,000
Capital cost allowance to be claimed by employer (current calendar year): $4,792
Operating costs for the year paid by the employer, including HST and insurance (of $600) (current calendar year): $4,500
Personal-use kilometers (current calendar year): 14,000
Number of months available (current calendar year): 12
Reimbursement to employer for personal use at 15 cents per kilometer (current calendar year): 2,100
Required:
Compute the standby charge AND operating cost benefits for 2020, if the business-use kilometers are: 12,000. Hint* don't forget to consider the impact of amounts reimbursed.
Compute the standby charge AND operating cost benefits for 2020, if the business-use kilometers are: 12,000. Hint* don't forget to consider the impact of amounts reimbursed.
Question options:
Standby charge of $4,199; Operating cost benefit of $2,100; Total Benefit $4,199
Standby charge of $6,000; Operating cost benefit of $3,920; Total Benefit $9,920
Standby charge of $6,000; Operating cost benefit of $3,920; Total Benefit $7,820
Standby charge of $4,199; Operating cost benefit of $2,100; Total Benefit $6,299
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