Employee X has full use of an employer-owned vehicle. Details are provided below: Vehicle was purchased for
Question:
Employee X has full use of an employer-owned vehicle. Details are provided below:
Vehicle was purchased for the employee use in: mid-December
Original cost of the vehicle to the employer, including HST: $20,000
Capital cost allowance to be claimed by employer (current calendar year): $4,792
Operating costs for the year paid by the employer, including HST and insurance (of $600) (current calendar year): $3,500
Personal-use kilometers (current calendar year): 12,000
Number of months available (current calendar year): 12
Reimbursement to employer for personal use at 15 cents per kilometer (current calendar year): 1,800
Required: compute the standby charge AND operating cost benefits for 2020, if the business-use kilometers are: 10,000. Hint* don't forget to consider the impact of amounts reimbursed.
Standby charge of $4,800; Operating cost benefit of $3,360; Total Benefit $6,360
Standby charge of $2,879; Operating cost benefit of $1,440; Total Benefit $4,319
Standby charge of $2,879; Operating cost benefit of $1,440; Total Benefit $2,519
Standby charge of $4,800; Operating cost benefit of $3,360; Total Benefit $8,160