On Jan. 1, 2020, Faris Inc. acquired an automobile for a recently hired salesperson who...
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Accounting
On Jan. 1, 2020, Faris Inc. acquired an automobile for a recently hired salesperson who will use the car for both employment and personal purposes. Purchasing the car cost $56,000, including 5% GST and 7% PST. Annual operating costs will be paid by Faris Inc. and are estimated to be $6,000. The salesperson estimates that he will drive the vehicle a total of 20,000 kms. in 2020, of which 11,400 kms. will be employment related. Based on this, the total Auto Benefit to be included in the salespersons employment income for 2020 will be:
a) $8,667
b) $15,848
c) $20,160
d) $8,186
e) None of the above
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