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Old MathJax webview On October 1, 2021, Paula received a company car (passenger vehicle) from Durham Tech Corp., her employer. For the Durham Tech Corp.
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On October 1, 2021, Paula received a company car (passenger vehicle) from Durham Tech Corp., her employer. For the Durham Tech Corp. to purchase the car that Paula wants, they will have to pay $41,000, including sales tax. If the car is leased, the monthly lease cost will be $700, including the sales tax. In either case, Durham Tech Corp. will pay all of the operating costs for the car. Paula anticipates that she will drive the car 1.700 km per month of which 300 km per month will be for employment purposes. (Note: Employer is not a registrant for sales tax purposes. Therefore, the actual cost for employer includes the sales tax) Required: Determine the amount to be included in Paula's employment income for the year 2021: a) If Durham Tech Corp. purchases the car, and b) If Durham Tech Corp. leases the car. IT-EN+F 10 (Mac). On October 1, 2021, Paula received a company car (passenger vehicle) from Durham Tech Corp., her employer. For the Durham Tech Corp. to purchase the car that Paula wants, they will have to pay $41,000, including sales tax. If the car is leased, the monthly lease cost will be $700, including the sales tax. In either case, Durham Tech Corp. will pay all of the operating costs for the car. Paula anticipates that she will drive the car 1.700 km per month of which 300 km per month will be for employment purposes. (Note: Employer is not a registrant for sales tax purposes. Therefore, the actual cost for employer includes the sales tax) Required: Determine the amount to be included in Paula's employment income for the year 2021: a) If Durham Tech Corp. purchases the car, and b) If Durham Tech Corp. leases the car. IT-EN+F 10 (Mac)
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