The cost of the automobile is $20,000 including HST. If the car is leased, the monthly lease payment is $500 including HST. The car is driven for a total of 26,000 km during 2022 and the operating costs for the year are $4,000.     Assume the car is purchased. It is used by the employee for 10 months of the year. In the other months, he was required to return the car to his employer's premises per company policy. He drives it for personal purposes for a total of 11,000 km. The minimum taxable benefit is:   a. $2,160.   b. $3,240.   c. $2,455.   d. $4,800.   e. $4,752.   f. $1,964.   g. $1,650.   h. $1,150.   i. $2,250.   j. $1,800.   k. $3,300.   l. $3,959.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The cost of the automobile is $20,000 including HST. If the car is leased, the monthly lease payment is $500 including HST. The car is driven for a total of 26,000 km during 2022 and the operating costs for the year are $4,000.

 

 

Assume the car is purchased. It is used by the employee for 10 months of the year. In the other months, he was required to return the car to his employer's premises per company policy. He drives it for personal purposes for a total of 11,000 km. The minimum taxable benefit is:

 

a. $2,160.

 

b. $3,240.

 

c. $2,455.

 

d. $4,800.

 

e. $4,752.

 

f. $1,964.

 

g. $1,650.

 

h. $1,150.

 

i. $2,250.

 

j. $1,800.

 

k. $3,300.

 

l. $3,959.

 

(The correct answer is l. $3,959 cuz I got marked, but I want to know the process of the calculation for this one. Thanks for reading)

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