Taxation

Ms. Singh has full use of an employer-owned Mustang GTS purchased for her use in mid-December of last year. It is now January. The original cost to the employer of this classic is $20,000, including HST. Other details of the car for the coming year are as follows: Capital cost allowance to be claimed by employer . . . . . . . . . . . . . . . . . $4,792 Operating costs for the year paid by the employer, including HST and insurance ($600) . . . . . . . . . . . . . . . . . . . . . . . . . . $3,500 Personal-use kilometers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 Number of months available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Reimbursement to employer for personal use at 15 cents per kilometers. . . . . . . . $1,800 REQUIRED Compute the taxable standby charge and operating cost benefits, if the business-use kilometers are: (a) 10,000 (b) 20,000