Hello,

I am reviewing for a midterm for Taxation I and came into a problem that i cannot solve:

D is provided with the use of her employer's car throughout the current year. the car was purchased for $30000 (including tax). THe employer also pays for hte operating expenses thatare $2600 anually. D drove the car 15000 km (employment) and 13000km (personal use). What is the minimum amount to be used in D's employment income for tax purposes in the current year?

Note:The textbook we are using for this example should be based on 2017 prescribed rates

Given Solution: $7019

My Solution:

13000 X .25= 3250

reduced standby charge: 30000 X 2% X 12 X (13000/28000) = 3342.85

My answer: 3250 + 3342.85= 6492.85