On 1 January of the current calendar year, an employer purchased a new car at a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 January of the current calendar year, an employer purchased a new car at a cost of $58,000. The car is given to an employee who uses it mainly for private purposes of the 6,000 km travelled to 31 March, 900 km were for business purposes. Expenses incurred were: Registration and insurance for 12 months from 1 January Petrol and oil (per month) Repairs (blown tyre 14 February) Contribution by employee for petrol and oil (declaration provided to employer) - Additional information Statutory formula method = Calculate the taxable value of the car fringe benefit, using the Statutory formula method. (Assume the car is garaged at the employee's home each night.) (5 Marks) 0.2 x Base value of the car x Number of days during that year on which car fringe benefit is provided Number of days in that year of tax $ Amount (if any) of the recipient's payment 1,200 125 150 100 On 1 January of the current calendar year, an employer purchased a new car at a cost of $58,000. The car is given to an employee who uses it mainly for private purposes of the 6,000 km travelled to 31 March, 900 km were for business purposes. Expenses incurred were: Registration and insurance for 12 months from 1 January Petrol and oil (per month) Repairs (blown tyre 14 February) Contribution by employee for petrol and oil (declaration provided to employer) - Additional information Statutory formula method = Calculate the taxable value of the car fringe benefit, using the Statutory formula method. (Assume the car is garaged at the employee's home each night.) (5 Marks) 0.2 x Base value of the car x Number of days during that year on which car fringe benefit is provided Number of days in that year of tax $ Amount (if any) of the recipient's payment 1,200 125 150 100
Expert Answer:
Answer rating: 100% (QA)
Calculation of Taxable Car Fringe Benefit Step 1 Determine Relevant Dates and Period Purchase D... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
Students also viewed these law questions
-
Assume that the taxpayers, George A. Warden (social security number 333-33-3330) and Mary S. Warden (social security number 444-44-4440) file a joint return. Both are 50-years old, have good...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A product has a contribution margin of $6 per unit and a selling price of $30 per unit. Fixed costs are $24,000. Assuming the new technology increases the unit contribution margin by 60 percent but...
-
Mike's Custom Furniture, Inc., reported the following comparative income statements for the years ended April 30, 2016 and 2015. During 2016, Mikes Custom Furniture, Inc., discovered that the 2015...
-
Two square gates close two openings in a conduit connected to an open tank of water as shown in Figure below. When the water depth, h, reaches S m, it is desired that both gates open at the same...
-
Consider two plates at temperatures of \(600 \mathrm{~K}\) and \(500 \mathrm{~K}\) with emissivities of 0.8 and 0.4 , respectively. The plates are separated by a gray gas that has an absorption...
-
Tim Howard has been offered the opportunity of investing $36,125 now. The investment will earn 11% per year and at the end of that time will return Tim $75,000. How many years must Tim wait to...
-
Cruise Mach 0.7 at 35,000 ft, International Standard Atmosphere Fan Pressure ratio: 1.45; Isentropic efficiency 94% LPC Pressure ratio: 1.45; Isentropic efficiency 92%* HPC Pressure ratio: 27.9;...
-
Are the values and motivations of millennials really different from those of previous generations, or do people become more alike as they proceed through various life stages?
-
Capital budgeting is the process by which investors determine the value of a potential investment project. The three most common approaches to project selection are payback period (PB), internal rate...
-
MyCarCorp produces car parts and is considering opening a new factory in Russia (assume now is beginning of 2002 and the factory would open in 2003). Factory will re- quire an initial investment of...
-
ABC's stock price is $90. The stock price will either increase 10% or decrease 8% in the first month. If the price increases in the first month, it will go up by $12 or down by $15 in the second...
-
A company's 2022 net sales are $80,187. The previous fiscal year, net sales were $76,118. What would the sales be for a 24 month pro forma projection? Show your work and explain how you arrived at...
-
What would be the volume ( cm 3 ) of a piece of Styrofoam if it had a mass of 3 5 0 g , no matter its shape? Show calculation.
-
16. Application of Time Value of Money Skills Harry Hurler has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last season, he was a starting...
-
On March 31, 2018, Gardner Corporation received authorization to issue $30,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
Refer to the preceding facts for Presss acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2013, Press held merchandise...
-
Patter Inc. acquired an 80% interest in Swing Company for $480,000 on January 1, 2011, when Swing had the following stockholders equity: Common stock ($10par) ............... $100,000 Additional...
-
Why isnt the total operating profit of all reportable segments normally equal to the consolidated operating profit?
-
How can we effectively analyze a firm's financial ratios?
-
In 2019, Italia Mining Corporation had sales of \($69\) million, total assets of \($45\) million, and total liabilities of \($23\) million. The interest rate on the debt is 6.5 percent, and its tax...
-
Tsingtao Companys balance sheet shows a stockholders equity book value (total common equity) of \($800,500.\) The firms earnings per share were \($3.50,\) resulting in a price/earnings ratio of...
Study smarter with the SolutionInn App