Homework Problem 6-11, 6-3

# Homework Problem 6-11, 6-3 - Solution to Problem 6-3...

This preview shows pages 1–3. Sign up to view the full content.

Solution to Problem 6-3 Maxine’s Cleaning Service is a CCPC with a Dec. 31 year end. Maxine is the sole shareholder and actively participates in the operation of the business as its only employee. Because extensive travel is required, the company provides Maxine with a car. During the first 6 months of this year she was provided with a Honda Accord that had been purchased last year for \$29,000. During this 6 month period, she drove the car a total of 23,000 km of which 15,000 km were employment related. The class 10 UCC balance on Jan. 1 is \$24,650. On July 1 of the current year, the Honda Accord was sold for \$25,000. On July 1, the Honda was replaced with a BMW 7 Series sedan costing \$105,000. Between July 1 and December 31, she drove this vehicle a total of 37,000 km of which 18,000 were related to employment. The company paid all the operating costs of both vehicles, a total of \$12,300. The company owns no other vehicles.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Part A : What are the tax Consequences to Maxine’s Cleaning Service as a result of owning and selling the Honda Accord and owning the BMW? The Honda Accord
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

Homework Problem 6-11, 6-3 - Solution to Problem 6-3...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online