Question
Question 3, i need a perfect answer ASAP please. Thank you! The Bonita Partnership leases an automobile with a manufacturer's list price of $65,000.
Question 3, i need a perfect answer ASAP please. Thank you!
" The Bonita Partnership leases an automobile with a manufacturer's list price of $65,000. The automobile has been made available to the Bonita Partnership sales manager Mr. Master,for all of 2014. During 2014, Mr. Master drove this automobile a total of 36,000 km, including 13,000 personal km. All the operating expenses were paid by the Partnership. The Bonita Partnership pays $995 per month on a four year lease for this automobile. The lease began September 1, 2013 and the Bonita Partnership deducted $3,200 as lease expense in 2013."
REQUIRED:
a) Calculate the taxable benefit to be included in Mr. Master's employment income for 2014.
b) Calculate the maximum lease expense that the Bonita Partnership can deduct for 2014.
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