Question 1 Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Peterman's premises so that it can be used by other employees. ● ● The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA. During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year.
Question 1 Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Peterman's premises so that it can be used by other employees. ● ● The automobile was purchased in 2016 for $42,000 and, during the years 2016, 2017, and 2018 the Company has deducted maximum CCA. During 2018, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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