Mr. Lo is an employee that is provided with an automobile that his employer leases at a cost of $2,100 per month includingall taxes. The total operating costs of the car were $0.60/km for the year and they were all paid by the employer. The carwas available to Mr. Lo the entire year, except that he didn't use the car for a 3-month period while he was on a disabilityleave. Mr. Lo drove the car a total of 50,000kms during the year, of which 22,500kms were employment related (fullydocumented). Mr. Lo reimbursed his employer $2.750 for his personal use of the automobile for the year.Which of the following answers corresponds to the automobile taxable benefit to be included in Mr. Lo's Net EmploymentIncome for the year?O $24,500O $8,590O $28,045O $30,550None of the choices shown.

Fringe benefits: Benefits given to the employee by the employer in addition to the compensation are…

Which of the following answers corresponds to the autornobile taxable benefit to be included in Mr. Lo's Net Employment Income for the year? O $24,500 $8,590 O $28,045 $30,550 O None of the choices shown.

Which of the following answers corresponds to the autornobile taxable benefit to be included in Mr. Lo's Net Employment Income for the year? O $24,500 $8,590 O $28,045 $30,550 O None of the choices shown.

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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Question

Mr. Lo is an employee that is provided with an automobile that his employer leases at a cost of $2,100 per month including
all taxes. The total operating costs of the car were $0.60/km for the year and they were all paid by the employer. The car
was available to Mr. Lo the entire year, except that he didn't use the car for a 3-month period while he was on a disability
leave. Mr. Lo drove the car a total of 50,000kms during the year, of which 22,500kms were employment related (fully
documented). Mr. Lo reimbursed his employer $2.750 for his personal use of the automobile for the year.
Which of the following answers corresponds to the automobile taxable benefit to be included in Mr. Lo's Net Employment
Income for the year?
O $24,500
O $8,590
O $28,045
O $30,550
None of the choices shown.

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