Reference no: EM132739071

Questions -

Q1) Which of the following items would not be relevant in determining the true value of indirect compensation to an employee?

a. The benefit would be made available to all employees no matter what their position in the company.

b. The employee would acquire the benefit from a third party if it was not provided by the employer.

c. The employee would require the benefit to meet their personal needs.

d. The employer would acquire the benefit at a lower cost than the employee could acquire it for themselves.

Q2) In computing their employment income, a salesperson may deduct...

a. Advertising, parking, supplies, and travel expenses.

b. Advertising, purchase of a computer, supplies, and travel expenses.

c. Advertising, golf course fees, supplies, and travel expenses.

d. Golf course fees, supplies and travel.

Q3) A taxable allowance is the amount...

a. Of the repayment of a specific expenditure.

b. That varies from period to period depending the employee's actual expenses.

c. Paid on an irregular basis over and above a normal salary.

d. Paid for which proof of the actual expenses incurred by the employee is not required.

Q4) D is provided with the use of her employer's car throughout the current year. The car was purchased for $28,000 (including tax). The employer also pays for the operating expenses that are $2,800 annually. D drove the car 18,000 km for employment purposes and 12,000 km for personal use. What is the minimum amount to be included in D's employment income for tax purposes in the current year, 2020?

Q5) On October 1, 2020, C's employer provided him with the use of a car. The car was leased for a monthly cost of $1,000 (including tax). The employer will also pay for the operating expenses that are expected to be $2,200 annually. C will drive the car 2500 km per month of which 1000 km will be for employment purposes. What amount is included in C's employment income for tax purposes in 2020?