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Question - Summer Sprinkler Company provides their employee, Tony, a vehicle to be used in conducting everyday service calls for the company. The vehicle was owned by the company for the entire year. Since this company is operated out of Ottawa, Canada, Tony uses it for mainly business in the summer, and more for personal use at other times in the year. The following information relates to the vehicle used by Tony:
Cost of the vehicle ($25,000 + $3,250 HST) $28,250.
Number of days vehicle was available for use 250.
Total Kilometres driven 20,000.
Total Personal kilometres driven 15,000.
What is the amount of the basic standby charge to be included in Tony's employment income for the year?
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