Question: Problem 2 . An employee is required to use her own automobile for employment duties. She acquired a new car at the beginning of the

Problem2. An employee is required to use her own automobile for employment duties. She acquired a new car at the beginning of the year for $40000(including GST and HST of 8%) and during the year she incurred the following expenses. Gasoline $2200, repairs and maintenance $400, insurance and registration $800, meals while away from the office $420($200 relates to out of town travel), parking during employment duties $300 and interest on loan to acquire car $3900. During the year, the employee drove 26000 km of which 14000 were for employment duties and the remaining were personal. Compute the personal and employment expenses.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!