26. In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The vehicle originally cost $30,000 and was leased by Everex Ltd. in the prior year, on a 36-month lease term. Ms. Patel provides you with the following information: Days the vehicle was available for use by Ms. Patel in the current year: 250 Days the vehicle was leased by Everex Ltd. In the current year: 365 Fair market value of the vehicle in the current year: $14,500 Lease payments (including HST, excluding insurance): $820 per month Total kilometers driven in the currentyear: 29,000 Personal kilometers driven in the currentyear: 15,000 The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is: A. (2/3) 820 12 = 6,560 B. (2/3) 820 8= 4,373 C. (2/3) 820 10 =5,466 d. 30000 2% 8 = 4800 27. Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives the following during the year. Salary: $80,000 Holiday giftbasket: $350 value Annual membership at local gym: $1,750 value (Susan uses this membership for personal use only) Life insurance premiums paid by employer: $1,100 Private health care insurance premiums paid by employer: $975 In addition, Susan incurred the following expenses during the year, for which she was not reimbursed: CPA Professional Dues (professional status is required by statute for auditors): $1,500 Travel expenses (incurred to perform audits of out-of-town clients of the firm): $950 Which of the following is the correct amount of net employment income for Susan? A.80000+1750+1100-1500-950 = 80,400 B.80000+350+1750+1100-1500-950 = 80,750 C.80000+1750+1100-1500-950 = 80,400 d. 80000+1750+1100+975+350-1500-950 = 81,375
26. In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The vehicle originally cost $30,000 and was leased by Everex Ltd. in the prior year, on a 36-month lease term. Ms. Patel provides you with the following information: Days the vehicle was available for use by Ms. Patel in the current year: 250 Days the vehicle was leased by Everex Ltd. In the current year: 365 Fair market value of the vehicle in the current year: $14,500 Lease payments (including HST, excluding insurance): $820 per month Total kilometers driven in the currentyear: 29,000 Personal kilometers driven in the currentyear: 15,000 The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is: A. (2/3) 820 12 = 6,560 B. (2/3) 820 8= 4,373 C. (2/3) 820 10 =5,466 d. 30000 2% 8 = 4800 27. Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives the following during the year. Salary: $80,000 Holiday giftbasket: $350 value Annual membership at local gym: $1,750 value (Susan uses this membership for personal use only) Life insurance premiums paid by employer: $1,100 Private health care insurance premiums paid by employer: $975 In addition, Susan incurred the following expenses during the year, for which she was not reimbursed: CPA Professional Dues (professional status is required by statute for auditors): $1,500 Travel expenses (incurred to perform audits of out-of-town clients of the firm): $950 Which of the following is the correct amount of net employment income for Susan? A.80000+1750+1100-1500-950 = 80,400 B.80000+350+1750+1100-1500-950 = 80,750 C.80000+1750+1100-1500-950 = 80,400 d. 80000+1750+1100+975+350-1500-950 = 81,375
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:26. In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The vehicle originally cost $30,000
and was leased by Everex Ltd. in the prior year, on a 36-month lease term. Ms. Patel provides you with the following information:
Days the vehicle was available for use by Ms. Patel in the current year. 250
Days the vehicle was leased by Everex Ltd. in the current year: 365
Fair market value of the vehicle in the current year: $14,500
Lease payments (including HST, excluding insurance): $820 per month
Total kilometers driven in the currentyear: 29,000
Personal kilometers driven in the currentyear: 15,000
The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is:
A. (2/3) 820 12 = 6,560
B. (2/3) 820 8= 4,373
C. (2/3) 820 10 =5,466
d. 30000 2% 8 = 4800
27. Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives the following during the year.
Salary: $80,000
Holiday giftbasket: $350 value
Annual membership at local gym: $1,750 value (Susan uses this membership for personal use only)
Life insurance premiums paid by employer: $1,100
Private health care insurance premiums paid by employer: $975
In addition, Susan incurred the following expenses during the year, for which she was not reimbursed:
CPA Professional Dues (professional status is required by statute for auditors): $1,500
Travel expenses (incurred to perform audits of out-of-town clients of the firm): $950
Which of the following is the correct amount of net employment income for san?
A80000+1
II
A.80000+1750+1100-1500-950 = 80,400
B.80000+350+1750+1100-1500-950 = 80,750
C.80000+1750+1100-1500-950 = 80,400
d. 80000+1750+1100+975+350-1500-950 = 81,375
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