Question

ABC Inc. provides Kelly with a company car. The car is leased for 500/month (including 13% HST and excluding insurance) and was made available to her for eight months. ABC pays all of the operating costs which amounted to $3,500. Kelly drove 13,000 kilometres of which 8,000 were for business. What is the minimum taxable benefit that Kelly must include on her personal tax return?

1) $2,200 rounded 2) $4,850 rounded 3) $3,517 rounded 4) $1,500 rounded