Please answer all parts of the question 1. Tyler is a contractor in Winnipeg and needs a new truck for his business. Thetotal purchase price is $59 300.45. He has $5000 saved for a down payment.He needs to decide whether he should buy or lease his vehicle. When youbuy or lease a new vehicle you need to pay Federal and Provincial sales tax.Buying Option:O The loan for the purchase includes the taxes and must be repaid in 48monthly payments of $1195.49 plus the down payment.Leasing Option:O There are 48 monthly payments of $720.25 plus taxes plus the downpayment.O The purchase price at the end of the lease is $27 100.a. What is the total cost to buy the truck?b. What is the monthly lease payment including taxes?c. What is the total cost to lease for 4 years?d. What is the cost to buy the truck at the end of the lease?e. How much will Tyler have spent in total if he buys the truck after the fouryear lease?f. What would you suggest Tyler do and why?

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CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 18P

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