In 2020, Alphas employer provided him with an employer-owned automobile costing $33,900 (including HST of...
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Accounting
In 2020, Alphas employer provided him with an employer-owned automobile costing $33,900 (including HST of $3,900) for 12 months. His kilometres for personal use were 5,000 out of a total of 20,000 kilometres. Operating costs paid by his employer during 2020 were $3,503 (including HST of $403). Which one of the following statements is true for 2020?
A. Alphas minimum operating cost benefit is $1,250.
B. Alphas minimum operating cost benefit is $1,017.
C. Alpha cannot elect to use of his standby charge as his operating cost benefit.
D. Alphas minimum standby charge is $4,000.
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