Octopus Pty Ltd allowed its managing director use of a company car. Details relating to the car
Question:
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.
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson