Lise Roy works for Fashion Productions in Northwest Territories and is provided with a company-ownedautomobile. The automobile was in Lise's possession for 365 days. Of the 44,972 kilometres driven, 23,212kilometres were for business purposes. The purchase price of the vehicle was $22,360.00, excluding the GSTcalculated at 5%.Lise requested in writing that Fashion Productions use the optional operating cost method if all the conditionsapply. She did not reimburse the company for any of the expenses associated with the automobile.Calculate Lise's annual automobile taxable benefit.

GST stands for Goods and services tax. It is an indirect tax. The main objective of GST is to make…

Answered: Calculate Lise's annual automobile…

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Calculate Lise's annual automobile taxable benefit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Lise Roy works for Fashion Productions in Northwest Territories and is provided with a company-owned
automobile. The automobile was in Lise's possession for 365 days. Of the 44,972 kilometres driven, 23,212
kilometres were for business purposes. The purchase price of the vehicle was $22,360.00, excluding the GST
calculated at 5%.
Lise requested in writing that Fashion Productions use the optional operating cost method if all the conditions
apply. She did not reimburse the company for any of the expenses associated with the automobile.
Calculate Lise's annual automobile taxable benefit.

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