During 2022, BLC Corporation leased a car for its employee Carmen, at a monthly cost of $983, including all taxes. BLC paid $7043 for the operating costs of the car during 2022. Carmen used the car for 11 months during the year and during the months of non-use, it was returned to BLC's premises. During the year, he drove the car a total of 26031 kilometers of which 16716 kilometers were for personal travel and the remainder was for employment-related use. Calculate Carmen's total taxable benefit arising from the use of the car in 2022.
During 2022, BLC Corporation leased a car for its employee Carmen, at a monthly cost of $983, including all taxes. BLC paid $7043 for the operating costs of the car during 2022. Carmen used the car for 11 months during the year and during the months of non-use, it was returned to BLC's premises. During the year, he drove the car a total of 26031 kilometers of which 16716 kilometers were for personal travel and the remainder was for employment-related use. Calculate Carmen's total taxable benefit arising from the use of the car in 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2022, BLC Corporation leased a car for its employee Carmen, at a monthly cost of $983, including all taxes. BLC paid $7043 for the operating costs of the car during 2022. Carmen used the car for 11 months during the year and during the months of non-use, it was returned to BLC's premises. During the year, he drove the car a total of 26031 kilometers of which 16716 kilometers were for personal travel and the remainder was for employment-related use. Calculate Carmen's total taxable benefit arising from the use of the car in 2022.
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