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 used by Ms. Patel in the current year: 250Days the vehicle was leased by Everex Ltd. in the current year: 365Fair market value of the vehicle in the current year: $14,500Lease payments (including HST, excluding insurance): $820 per monthTotal kilometres driven in the current year: 29,000Personal kilometres driven in the current year: 15,000The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is:O A. $2,320O B. $3,279OC. $4,373O D. $6,560(---) Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives the following during the year:Salary: $80,000Holiday gift basket: $350 valueAnnual membership at local gym: $1,750 value (Susan uses this membership for personal use only)Life insurance premiums paid by employer: $1,100Private health care insurance premiums paid by employer: $975In 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): $1,500Travel expenses (incurred to perform audits of out-of-town clients of the firm): $950Which of the following is the correct amount of net employment income for Susan?O A. $80,400O B. $80,750O C. $82,850O D. $79,650

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 used 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 kilometres driven in the current year: 29,000 Personal kilometres driven the current year: 15,000 The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is: OA. $2,320 O B. $3,279 OC. $4,373 O D. $6,560

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 used 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 kilometres driven in the current year: 29,000 Personal kilometres driven the current year: 15,000 The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is: OA. $2,320 O B. $3,279 OC. $4,373 O D. $6,560

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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