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Peter's employer requires him to use his own vehicle for work and pay all of the vehicle's operating costs. Mr. O. is not paid commissions.
Peter purchased a vehicle on July 1, 2020 for $37,290 including HST.Peter. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned the vehicle he paid:
bank loan interest $1,950 gas and oil 1,840maintenance 300insurance 1,400licence plates 100 Required:
Problem 1: Calculate the amount Peter can deduct from employment income. Show all calculations.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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