Jim McEntee is provided with a company car which he is allowed to use for private purposes.
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Question:
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 (all paid by the employer) were:
Petrol and oil $1,020
Registration and insurance $1,500
Maintenance $500
- Required: 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).
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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