Reference no: EM133528278

Question: During 2022, Babco Corporation purchased a car for its employee Andrew, at a cost of $43287, including all taxes. Babco paid $2440 for the operating costs of the car during 2022. Andrew used the car for 6 months during the year and during the months of non-use, it was returned to Babco's premises. During the year, he drove the car a total of 19176 kilometers of which 11262 kilometers were for personal travel and the remainder was for employment-related use. Andrew reimbursed Babco $128 per month for the use of the car. Calculate the taxable benefit arising from the use of the car that Andrew must include in his employment income in 2022.