All employees of the Shield Company are given the use of a company car. The car...

 

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All employees of the Shield Company are given the use of a company car. The car is theirs to use for both personal and business purposes, and the company pays for all operating costs. Some employees pay a portion of the costs back to Shield, and some do not; it is dependent on their employment contract. Natasha Romanoff drove the car a total of 26,000km, 12,999 of which were for personal use. Natasha has been with the company for 2 years and the car she drives was purchased 2 years ago for $69,000 (including HST). Annual operating costs paid by Shield total $5,600. Natasha's contract states that she must reimburse Shield $0.20/km for personal use of the car. She wrote a cheque for this reimbursement on February 2, 20x8. Phil Coulson drove his company car a total of 40,000km, 4,000 of which were for personal use. Phil began work at Shield on February 1, 20x6. The car Phil is driving is being leased at $860/month by Shield. The $860 payment includes a portion for insurance ($70/month). Other annual operating costs paid by Shield total $7,800. Agent Coulson does not have to reimburse Shield for any personal use of the vehicle. Nick Fury drove the car a total of 22,000km, 12,000 of which were for personal use. Director Fury began working at Shield on March 1, 20x7. The car he is driving was purchased by Shield for $90,000 (including HST) on March 1, 20x7. Director Fury must reimburse Shield $100/month for personal use of the car. The operating costs paid by Shield were $3,200 for 20x7. He wrote a cheque for 20x7's reimbursement on January 15, 20x8. Required: For each of the employees, calculate the minimum taxable benefit to the employees for the year ending December 31, 20x7 (ignore leap year). All employees of the Shield Company are given the use of a company car. The car is theirs to use for both personal and business purposes, and the company pays for all operating costs. Some employees pay a portion of the costs back to Shield, and some do not; it is dependent on their employment contract. Natasha Romanoff drove the car a total of 26,000km, 12,999 of which were for personal use. Natasha has been with the company for 2 years and the car she drives was purchased 2 years ago for $69,000 (including HST). Annual operating costs paid by Shield total $5,600. Natasha's contract states that she must reimburse Shield $0.20/km for personal use of the car. She wrote a cheque for this reimbursement on February 2, 20x8. Phil Coulson drove his company car a total of 40,000km, 4,000 of which were for personal use. Phil began work at Shield on February 1, 20x6. The car Phil is driving is being leased at $860/month by Shield. The $860 payment includes a portion for insurance ($70/month). Other annual operating costs paid by Shield total $7,800. Agent Coulson does not have to reimburse Shield for any personal use of the vehicle. Nick Fury drove the car a total of 22,000km, 12,000 of which were for personal use. Director Fury began working at Shield on March 1, 20x7. The car he is driving was purchased by Shield for $90,000 (including HST) on March 1, 20x7. Director Fury must reimburse Shield $100/month for personal use of the car. The operating costs paid by Shield were $3,200 for 20x7. He wrote a cheque for 20x7's reimbursement on January 15, 20x8. Required: For each of the employees, calculate the minimum taxable benefit to the employees for the year ending December 31, 20x7 (ignore leap year).

Answer rating: 100% (QA)

a Taxable benefit of Natasha Sr No Particulars Kms or Amount Formula used 1 Total Kms driven 26000 2 ... View the full answer