Compute the standby charge and operating cost benefits

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Question - Employee X has full use of an employer-owned vehicle. Details are provided below:

Vehicle was purchased for the employee use in: mid-December

Original cost of the vehicle to the employer, including HST: $26,000

Capital cost allowance to be claimed by employer (current calendar year): $4,792

Operating costs for the year paid by the employer, including HST and insurance (of $600) (current calendar year): $4,200

Personal-use kilometers (current calendar year): 15,000

Number of months available (current calendar year): 12

Reimbursement to employer for personal use at 15 cents per kilometer (current calendar year): 2,250

Required - Compute the standby charge AND operating cost benefits for 2020, if the business-use kilometers are: 27,000. Hint* don't forget to consider the impact of amounts reimbursed.

Reference no: EM132829018

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