Reference no: EM132669331
Questions -
Q1. In the current year, Mr. Nguyen is provided with a vehicle owned by his employer, Translux Inc. The vehicle was originally purchased by Translux Inc. five years ago for $29,500 (including HST). Nguyen provides you with the following information:
Days the vehicle was available for use by Mr. Nguyen: 275
Months the vehicle was owned by Translux Inc.: 12
Fair market value of the vehicle in the current year: $12,500
Total kilometres driven in the current year: 32,000
Personal kilometres driven in the current year: 12,000
Why the minimum standby charge arising from the employer owned vehicle for Mr. Nguyen in the current year is $4247?
Q2. In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The vehicle originally cost $30,000 and was leased by Everex Ltd. in the prior year, on a 36-month lease term. Ms. Patel provides you with the following information:
Days the vehicle was available for use by Ms. Patel in the current year: 250
Days the vehicle was leased by Everex Ltd. in the current year: 365
Fair market value of the vehicle in the current year: $14,500
Lease payments (including HST, excluding insurance): $820 per month
Total kilometres driven in the current year: 29,000
Personal kilometres driven in the current year: 15,000
Why the minimum standby charge arising from the employer leased vehicle for Ms. Patel in the current year is $4373?