Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. Ms. Winters is given full

Question 1

Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties.

Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Petermans premises so that it can be used by other employees.

The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA.

During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year.

Required: Ignore all GST/PST/HST implications. Indicate the minimum taxable benefit that would be allocated to Ms. Smith in each of the following Cases as well as Standby charge, Operating Cost-Benefit, Total Benefit.:

Case A Ms. Winters has use of the car for 11 months of the year. Personal use during the year totals 8,000 kilometers.

Case B Ms. Winters has use of the car for 9 months of the year. Personal use during the year totals 15,000 kilometers.

Case C Ms. Winters has use of the car for 7 months of the year. Employment use during the year totals 9,000 kilometers.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

9th Edition

0814408648, 978-0814408643

More Books

Students also viewed these Finance questions

Question

Explain how to test a population proportion p.

Answered: 1 week ago

Question

What can Chandra do to correct her mistake?

Answered: 1 week ago