In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The vehicle originally cost $30,000 and was leased by Everex Ltd. in the prior year, on a 36-month lease term. Ms. Patel provides you with the following information:

Days the vehicle was used by Ms. Patel in the current year: 250

Days the vehicle was leased by Everex Ltd. in the current year: 365

Fair market value of the vehicle in the current year: $14,500

Lease payments (including HST, excluding insurance): $820 per month

Total kilometres driven in the current year: 29,000

Personal kilometres driven in the current year: 15,000

The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is:

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Part 1

A. $6,560

B. $4,373

C. $2,320

D. $3,279