I need help on this as this will be my third submission. In the feedback i asked to review all answers for these questions. Not sure where i am going wrong. I have provided my answers

Jim McEntee is provided with a company car which he is allowed to use for private purposes. The car was purchased on 1 November 2017 for $40,000. During the year Jim drove the car 30,000 km of which 60% were for business trips.

Costs associated with the vehicle were:

Petrol and oil$1,020

Registration and insurance$1,500

Maintenance$500

(a) I need to Calculate the Taxable Value of the benefit for the 2017/18 fringe benefits tax (FBT) year for the vehicle using both the statutory formula method and the operating cost method. (Show your workings for each method).

Statutory formula method: (assume 365 days in a year)

365 / 151 x 30,000 = 72,516km

Statutory rate is 20%

40,000 x 0.20 x 151 x (1-60%) / 365 - 0 = $1,323

1,323 x 2.0802 x 47% = $1,293 FBT

Operating cost method: (assume 365 days in a year and a benchmark interest rate of 5.25%)

1,020 + 1,500 + 500 = $3,020 Costs

40,000 x 25% x 151 / 365 = $4,136 Depreciation

40,000 x 5.25% x 151 / 365 = $868 Interest

3,020 + 4,136 + 868 = $8,024

8,024 x (1-60%) - 0 = $3,209

3,209 x 2.0802 x 47% = $3,137 FBT

(b)Based on your calculations, state which method is the most beneficial method for the employer for assessing the FBT liability?

The Statutory Formula - it is the most beneficial as you end up paying less compared to the Operating cost method.