Taxable Automobile Benefits

The Jareau Manufacturing Company owns a car with an original cost of $30,000. The car has been owned by the company for two years. Jareaus company policy requires that cars be returned to the corporate premises when they are not being used by the employee.

During 2022, the car was used by the companys sales manager, Mr. Robert Stickler. During this year, Mr. Stickler drove the car 36,000 kilometres. Operating costs, all of which were paid by the company, totalled $3,920. In addition, the company claimed CCA of $5,610 related to this car for the current year.

Required: Ignore all GST/HST/PST implications. Indicate the minimum taxable benefit to

Mr. Stickler in each of the following cases:

Case A Mr. Stickler has use of the car for the entire year. He drives it a total of 7,200

kilometres for personal purposes and 28,800 kilometres for employment purposes.

Case B Mr. Stickler has use of the car for 10 months of the year. He drives it a total of

15,000 kilometres for personal purposes and 21,000 kilometres for employment purposes.

Case C Mr. Stickler has use of the car for six months of the year. He drives it a total

of 25,200 kilometres for personal purposes and 10,800 kilometres for employment

purposes.