During 2023, Babco Corporation purchased a car for its employee Andrew, at a cost of $33036, including all taxes. Babcopaid $2371 for the operating costs of the car during 2023. Andrew used the car for 10 months during the year andduring the months of non-use, it was returned to Babco's premises. During the year, he drove the car a total of 19492kilometers of which 13505 kilometers were for personal travel and the remainder was for employment-related use.Andrew reimbursed Babco $130 per month for the use of the car. Calculate the taxable benefit arising from the use ofthe car that Andrew must include in his employment income in 2023.

To calculate the taxable benefit arising from the use of the car that Andrew must include in his…

Answered: During 2023, Babco Corporation…

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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Cole purchased a car for business and personal use. In 2022, he used the car 60% for business (13,000 total use miles – ratably through the year) and used the standard mileage rate to calculate his vehicle expenses. He also paid $1,500 in interest and $360 in county property tax on the car. What is the total business deduction related to business use of the car rounded to the nearest dollar?
On April 23, 2019, Bailey purchased an automobile for $25,000. The car is used 80% for business and 20% for personal use. What is the cost recovery deduction for 2019 and 2020 assuming the 100% bonus was taken? (Round answers to the nearest dollar)
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. He paid $1,850 for gasoline on these trips. Ryan estimates that he drove approximately 2,220 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 18,500 miles (a combination of business and personal travel). What business expense amount can Ryan deduct (if any) for these trips? (Do not found intermediate calculations. Round your final answers to the nearest whole dollar amount.) Maximum deductible amount
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Blackburn Corporation is a calendar year taxpayer. Every year on September 1, Blackburn enters into a contract with Smith Company for Smith to provide cleanup and winterization services for its grounds and buildings. The amount paid on September 1 when the contract is signed is $7,500 and the contract runs from December of the same year through March of the following year. When may Blackburn deduct the amount paid on September 1, 2020?
Quinn is an employee of Caribbean Imports. His company car is a 2021 Toyota Prius LXE with a fair-market value of $30,000 and a lease value of $8,250, according to Publication 15-b. During the year, Quinn drove 36,953 miles, of which 6,822 were for personal use. The car was available for use on 250 of the days during the year. All gasoline was provided by the employer and is charged back to Quinn at $0.055 per mile. What is the amount of the company-car fringe benefit that will appear on Quinn's W-2, using the lease-value rule? (Do not round intermediate calculations, only round final answer to two decimal points.) Multiple Choice $375.21 $1,043.19 $1,418.40
The car is leased for $750month (including 13 HST and excluding insurance) and was made available to him for 10 months PDF pays all of the operating costs ($3,500) and was reimbused by Larry receiving 12 cents for every personal KM he drove Larry drove 30,000 kilometres in 2019 of which 20,000 were for business What is the minimum taxable benefit that Larry must include on his 2019 personal tax return
s
During 2022, she drove the car 16,200 miles. 12,325 of those miles were for business purposes (7,300 miles through 6/30, 5,025 miles through 12/31). She paid a total of $650 of insurance, $1,280 of interest on her car loan, $830 for repairs & maintenance, $270 for licensing, and $2,310 for fuel. She also paid $225 for parking and tolls exclusively on business trips. She uses the standard mileage rate to compute her transportation deduction for the year. What is her total deduction for expenses related to her car for 2022.
Ryan is self employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,850 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 14,600 miles. Ryan estimates that he drove approximately 1,560 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. What business expense amount can Ryan deduct (if any) for these trips?
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