Question: QUESTION 13 Save Answer 15 points Maxine's Cleaning Services is a Canadian controlled private corporation (CCPC) with a December 31 taxation year end. Maxine
QUESTION 13 Save Answer 15 points Maxine's Cleaning Services is a Canadian controlled private corporation (CCPC) with a December 31 taxation year end. Maxine Brott is the sole shareholder of the corporation and actively participates in the business as an employee. Because of the extensive travel required in supervising her employees, the Company provides Ms. Brott with a car. During the first 6 months of 2021, the provided car was a Honda Accord that had been purchased in 2019 for $29,000. During this month period, she drove the car a total of 23.000 kilometers. of which 15,000 were for employment purposes and 8.000 for personal use. The Class 10 Uce balance at the beginning of 2021 was $15.950. On July 1, 2021. the Honda Accord was sold for $25,000. It was replaced with a BMW 7 Series sedan at a cost of $105,000. During the period July 1, 2021 through December 31, 2021, she drove the vehicle a total of 37.000 kilometers, of which 18.000 were for employment purposes and 19,000 for personal use. Throughout 2021, the Company paid for all operating costs of both vehicles, a total of $12.300. Other than the Honda Accord and the BMW sedan, the Company did not own any other vehicles during 2021. During the period January 1, 2021 through December 31, 2021, an automobile was always available to Ms. Brott. Required: Determine the following: A. The income tax consequences to Maxine's Cleaning Services that result from owning and selling the Honda Accord and owning the BMW sedan during 2021. B. The minimum amount of the taxable benefit that Maxine will have to include in her 2021 employment income. Ignore GST/HST and PST considerations in both parts of this question. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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