Susan was provided with a company car to drive during March to December of the current year.The car cost the company $22,000 plus GST and PST totalling 11%.Susan drove the car a total of 15,000 kilometres during the year.11,000 kilometres were for business purposes and the other 4,000 kilometres were for personal use.Susan's employer pays for all of the vehicle's operating costs which totaled $1,100.What is the minimum amount that Susan can report as her total taxable benefit for the use of the car during the year? (Round your answer.)

Question

Quizplus · Accepted Answer

To calculate the taxable benefit for the car usage, we first need to determine the standby charge and operating cost benefit.
- Standby charge: This is a benefit an employee receives for having access to a company car. It is calculated based on the original cost of the car and the number of days the car was made available to the employee. For this scenario, the standby charge is $22,000 x 2% x 10/12 = $366.67
- Operating cost benefit: This is a benefit an employee receives for not having to pay for any of the car's expenses while using it for personal purposes. For this scenario, the operating cost benefit is $1,100 x 4,000/15,000 = $293.33

Therefore, the total taxable benefit for the car usage is $366.67 + $293.33 = $660. 
Thus, Susan can report $660 as her total taxable benefit for the use of the car during the year. However, only answer B is closest to this amount.

Susan Was Provided with a Company Car to Drive During