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The Jareau Manufacturing Company owns a car with an original cost of $30,000. The car...

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Accounting

The Jareau Manufacturing Company owns a car with an original cost of $30,000. The car has

been owned by the company for two years. Jareau requires that cars be returned to the corpo- rate premises when they are not being used by the employee.

During 2020, the car has been used by the companys sales manager, Mr. Robert Stickler. During this year, Mr. Stickler drove the car 36,000 kilometres, with all of the expenses being paid for by the company. The operating costs paid for by the company total $3,920. In addition, the com- pany deducted capital cost allowance of $5,610 related to this car for the current year.

Required: Ignore all GST/PST/HST implications. Indicate the minimum taxable benefit that would be allocated to Mr. Stickler in each of the following Cases:

Case A Mr. Stickler has use of the car for the entire year and drives it a total of 7,200 kilometres for personal purposes.

Case B Mr. Stickler has use of the car for ten months of the year and drives it a total of 15,000 kilometres for personal purposes.

Case C Mr. Stickler has use of the car for six months of the year and drives it a total of 25,200 kilometres for personal purposes.

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