Homework Problem 6-11, 6-3

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

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

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