A car purchased on 1 April 2014 for $38,000 is used by an employee for private purpose only for the year ended 31 March 2017. The employee travelled 26,500km during the year and contributed $2600 to the employer. Assume the employer can claim GST input tax.

• a)DeterminethetaxablevalueusingstatutorycostmethodandtheFBTliability.
• B)Determine the period where the value will change and the FBT tax liability.

Assume the following costs were available for the car.

Annual Registration and insurance - $1,250

Repairs - $500

Maintenance - $1,780

Fuel - $4,500

Deemed depreciation: ?

Deemed interest: ?

• C)DeterminethetaxablevalueandFBTliabilityfortheyearended31March2017usingoperatingcostmethod.Betweenpart(a)and(c),whichwillyouchooseandwhy?
• D)What documentary evidence must be kept for operating cost method?