Question 1 Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Peterman's premises so that it can be used by other employees. ● ● The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA. During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year.
Question 1 Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Peterman's premises so that it can be used by other employees. ● ● The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA. During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 31CE
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Transcribed Image Text:Question 1
Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties.
Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when
she is not using it for employment or personal activities, it must be returned to Peterman's premises so that
it can be used by other employees.
●
●
The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company
has deducted maximum CCA.
During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating
costs. These costs totaled $11,350 during the year.
Required: Ignore all GST/PST/HST implications. Indicate the minimum taxable benefit that would be allocated to
Ms. Ms. Winters in each of the following Cases:
Case A Ms. Winters has use of the car for 11 months of the year. Personal use during the year totals 8,000
kilometers.
Case B Ms. Winters has use of the car for 9 months of the year. Personal use during the year totals 15,000
kilometers.
Case C Ms. Winters has use of the car for 7 months of the year. Employment use during the year totals 9,000
kilometers.
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