Josette is an advertising manager for Hightown Pty Ltd, (Hightown) a large importer and distributor of exclusive
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Question:
On 15 April 2022, Hightown leased a new car costing $87,000 (GST inclusive). Total lease payments in the first year are $7,800.
The car was garaged at Josette's house most nights and she was permitted to use the car for personal trips.
The particulars for the year regarding the car and for which invoices are retained, including a log book, include:
Stamp duty $950
Registration & Insurance $1,500
Service and Maintenance $900
Petrol and oil $2,500
Total kilometres traveled (as per log book) 55,000 km
Home to work and personal travel 20,000
Josette paid $3,000 for repairs to the car which she incurred when she reversed into a pole at her local shopping centre. She did not seek reimbursement for these costs from Hightown.
Required:
Your answer should show relevant calculations and be clearly supported by
references to relevant legislation, case law, or tax rulings.
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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