1. Margaret is required to use her own automobile for company business. For this, Measureup pays her an annual allowance of $4,000. She purchased a new automobile for $67,400 plus HST (13%), and received $18,000 as a trade on her old car. At the end of the previous year, the old car had an undepreciated capital cost balance of $16,000 (class 10.1). Of the 20,000 km driven in 2023, 13,000 km were for employment purposes. Margaret incurred automobile operating costs of $5,700.

Rob Worley of Richmond, Virginia, is a divorced 40-year-old loan officer at the Dominion Bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon in late December, he visits University Auto Mall and buys a new car for $28,000. To obtain insurance on the car, Rob calls his agent, Karen Cunningham, who represents Charter Insurance Company, and explains his auto insurance needs. Karen says she’ll investigate the various options for him. Three days later, Rob and Karen get together to review his coverage options. Karen offers several proposals, including various combinations of the following coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance.

Objectives • Describe the key features, policy limits and persons insured of 5 important car insurance. • Apply what you have learned on automobile insurance to real life saturation. Questions

1. Describe the key features of these insurance coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance. There are 5 types of insurance, each is worth 10 points. 50 points

2 Are there any limitations on these coverages? Explain. There are 5 types of insurance, each is worth 3 points.

3. Indicate the persons or property that would be protected under each type of coverage. There are 5 types of insurance, each is worth 3 points.

4. What kind of insurance coverages would you recommend that Rob purchase? Explain your recommendation.

A $95,000 investment is to amortized for tax purposes using themaximum CCA available.
If the investment represents a fleet of automobiles for a telephoneutility, what will be the allowable CCA rate?
How much will the addition of the automobiles increase theallowable dollar CCA in Year 1? Year 2?
If the investment had been for machinery, what difference wouldthat have made in the CCA rate allowed?
What difference will it make when the cars are scrapped for next tonothing after five years? (the company’s autos tend to accumulatevery high mileage, and the company has adopted the practice ofgiving them away to interested employees when their usefulness tothe company ceases)