Octopus Pty Ltd allowed its managing director use of a company car. Details relating to the car for the whole of the current FBT year are as follows:

Cost (including GST)..............................................................$40,000
Opening written down value...............................................$34,000

Distance travelled during FBT year:

           Business.......................................................................14,000 km
           Private..........................................................................24,000 km

Contribution to by managing director...................................$500
Repairs and maintenance....................................................$1,200
Fuel and oil.............................................................................$1,500
Registration and insurance for holding period.................$1,800

Required: 

Calculate the FBT payable for the current FBT year under both methods. Show full workings.

Answer rating: 100% (QA)

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