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 in the current year: 15,000 The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is: Question content area bottom Part 1 A. $6,560 B. $4,373 C. $2,320 D. $3,279

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 in the current year: 15,000
The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is:
Question content area bottom
Part 1
A. $6,560
B. $4,373
C. $2,320
D. $3,279
Transcribed Image Text: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 in the current year: 15,000 The minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is: Question content area bottom Part 1 A. $6,560 B. $4,373 C. $2,320 D. $3,279
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