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    • CommentAuthorfrenchy
    • CommentTimeOct 4th 2009
     
    I am working on a homework question, but i am stuck on a question and need help.

    The question is the following:

    Ms. Internal auditor, who is employed by susan's super ltd. travels extensively across canada. according to the terms of her contract she receives an accommodation allowance of $10,000 per year

    The contract states that she must use her own car and pay for all traveling expenses. Ms. Auditor bought a new car on January 5 2009 for $32,000 plus gst and past at 7%. Her km's for business purpose were 15,000 out of 21,000

    During the year, Ms auditor paid the following amounts, all of which were reasonable in the circumstances and which were supported by receipts.
    A)accomodations including meals were $4500, including pst and gst
    B)total car expenses: gas including pst and gst $1500
    maintenance including pst and gst $500
    insurance $500
    license $90
    Interest on bank loan $4000

    Ms Auditor calculated her CCA to be (1/2 x 30% x 32,000)= $4,800

    Ms auditor also filed a prescribed T2200 which her employer had signed. Assume that the employment use of the caar is reasonable in the circumstances.

    Required: discuss the tax consequences of the allowance and related expenses plus the deductability of the car expenses.

    Any help would be appreciated.
    • CommentAuthorJinLu
    • CommentTimeOct 11th 2009
     
    U CAN SNED IT TO MY EMAIL: INFOATSHANGHAI@GMAIL.COM
    ALSO WE CAN DISCUSS THIS QUESTION ONLINE, PLZ ADD ARRON.JIN@HOTMAIL.COM



 

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