Two employees of Dentonia Company were given the use of company cars on January 1 of 2020. The two cars are identical. Each car was driven 15,000 kilometers during 2020 and had operating costs of $2,500, all of which were paid by the company. When the cars are not being used by the employees, the company requires that they be returned to its premises.

Required: Ignore all GST/PST/HST implications. For each of the two following cars, calculate the minimum taxable benefit (standby and operating cost benefit) from January 1 to December 31, 2020. 

 

For full marks you must show all calculations and your work must be labeled clearly. You can either type in your calculations in the space provided or attach your calculations. Round numbers to two decimal points.  

Car A is purchased for $45,000. It is used by Kathy Tremblay for the whole year. She drives it for employment purposes for a total of 9,000 kilometers. Kathy pays Dentonia Company $1,200 for the use of the car.

Car B is leased for $735 per month. It is used by Rob Pecora for 11 months of the year. He drives it for employment purposes for a total of 6,000 kilometers.