This year, Bob's employer provided him with an employer-owned automobile costing $55,000 (including HST) for 12 months. His kilometers for personal use were 14,000 out of a total of 19,000 kilometers. Operating costs paid by his employer during this year were $3,700 (including HST) and the stated rate is .29 per km.

 

For each option, indicate if true or false with reasons, 

(a) Bob's standby charge is $13,200.

(b) Bob's minimum operating cost benefit is $2,726.

(c) Bob's minimum operating cost benefit is $4,060.

(d) Bob can elect to use 1/2 of his standby charge as his operating cost benefit.

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