What is the effect on Xiang net employment income

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Problem - Xiang began employment with Deslauriers Ltd. on January 1, 2020. Deslauriers Ltd. leased an automobile at a cost of $650 per month for Xiang's use. Xiang drove a total of 25,000 kilometers during 2020 of which 15,000 kilometers were driven for employment purposes. Deslauriers Ltd. paid all costs of operating the car amounting to $10,800.

Required - What is the effect on Xiang's net employment income, that is, calculate the taxable benefit that would be added to Xiang's net employment income for tax purposes for 2020. Show ALL calculations to provide the required information, including those for which the result is nil.

Reference no: EM132850384

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