Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You travel for work and your employer gives you a car that you can use for both business and personal purposes. Your employer purchased the

image text in transcribed

You travel for work and your employer gives you a car that you can use for both business and personal purposes. Your employer purchased the car two years ago for $45,200, including $5,200 HST. If you do not need the car for work, you are asked to return the car and car keys to your employer. In 2020, you drove at total of 37,000 kilometers. Your employer has deducted the maximum capital cost allowance (income tax's method of depreciation) and paid for all of the car's operating expenses. In 2020, the operating expenses alone totaled $15,780. Required: Calculate the taxable benefit your employer will include on your 2020 T4 slip in the each of the following separate cases: Case 1 - You had the car for 9 months and drove 6,000 kilometers for personal use. Case 2 - You had the car for 11 months and drove 28,000 kilometers for personal use. Case 3 - You had the car for 7 months and drove 18,600 kilometers for work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Accounting questions