Ms. Amelia Hamburg works for a large, publicly traded employer. As she is required to travel in
Question:
Ms. Amelia Hamburg works for a large, publicly traded employer. As she is required to travel in her work for that employer, the company provides her with an automobile.
Amelia is allowed to use the vehicle for personal activities. However, there are some periods during the year when she does not need the car for employment related activities. During these periods she is required to return the car to her employer's premises.
The car that she will use was purchased by her employer in 2018 for $45,200, including $5,200 in HST. During the years 2018 and 2019, the company deducted maximum CCA.
During 2020, Amelia drove the car a total of 37,000 kilometers. The company pays all of her operating costs which, during 2020 totaled $11,340.
Required: Indicate the minimum taxable benefit that would be allocated to Amelia in each of the following independent Cases:
Case 1 — She has use of the car for 9 months of the year. Personal use during the year totals 6,000 kilometers.
Case 2 — She has use of the car for 11 months of the year. Personal use during the year totals 28,000 kilometers.
Case 3 — She has use of the car for 7 months of the year. Employment use during the year totals 18,600 kilometers.
Expert Answer:
Ans First You must understand the basic logic behind it then u can easily answer all parts 1Standby charge IT is designed to estimate the depreciation ... View the full answer
