FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company buys a car for its CEO on 31St March of the current financial year at a cost of $45,000. The CEO uses the

A company buys a car for its CEO on 31St March of the current financial year at a cost of $45,000. The CEO uses the car for business 75% of the time. The car travels 40,000 kilometres in the current FBT year and the CEO makes a contribution of $250 towards petrol costs. Assuming the statutory formula method, what is the taxable value of the car fringe benefit?

(a) $2,000.00

(b) $787.50

(c) $987.50

(d) $1,412.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below Calculating the Taxable Value of the Ca... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Advanced Accounting

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

11th edition

538480289, 978-0538480284

More Books

Students also viewed these Law questions

Question

★★★★★
.A spherical mass is launched vertically upward inside a warehouse. The sphere strikes the ceiling, 18 meters high. The mass is 15.0 lbm, and is launched at 25.0 m/s. g = 9.81 m/s 1. Create a table...

Answered: 1 week ago

Question

★★★★★
The following transactions involving intangible assets of Simmons Corporation occurred on or near December 31, 2020. Simmons paid Galaxy Company $600,000 for the exclusive right to market a...

Answered: 1 week ago

Question

★★★★★
DripTech Private Limited is a company that specializes in the manufacture and distribution of irrigation equipment. The information below was obtained from the books of DripTech (Pvt) for the...

Answered: 1 week ago

Question

★★★★★
Administrative agencies, boards or commissions usually use registration or licensing to control business subject to the administrative law. True False

Answered: 1 week ago

Question

★★★★★
You are trying to get a job as a recruiter for an HR department for a large multinational company. One of the things you are asked in your interview is to describe the following types of recruiting...

Answered: 1 week ago

Question

★★★★★
Consider the two waves shown here, which we will consider to represent two electromagnetic radiations: (a) What is the wavelength of wave A? Of wave B? (b) What is the frequency of wave A? Of wave B?...

Answered: 1 week ago

Question

★★★★★
=+34. Gross domestic product diagnostics revisited. In Exercise 33 we saw that there were several potential high influence points. After a researcher set aside those four countries, she refit the...

Answered: 1 week ago

Question

★★★★★
Danna Martin, president of Mays Electronics, was concerned about the end-of-the year marketing report that she had just received. According to Larry Savage, marketing manager, a price decrease for...

Answered: 1 week ago

Question

★★★★★
A firm offers terms of 1/10, net 30. Requirement 1: What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations. Enter...

Answered: 1 week ago

Question

★★★★★
1. Scott Co. paid $2,800,000 to acquire all of the common stock of Dawn Corp. on January 1, 2020. Dawns reported earnings for 2020 totaled $512,000, and it paid $160,000 in dividends during the year....

Answered: 1 week ago

Question

★★★★★
for many of its soup and casserole items. The per-bag purchase cost of all bags received in January was $30. Use the following information to calculate the value of ground beet The Pleasant Meadows...

Answered: 1 week ago

Question

★★★★★
Interest Accruals Adjusting Entries Practice Set A. XYZ, Inc., a corporation in the film industry, made a short-term loan to one of their employees an aspiring actor, Johnny Debt. The note was made...

Answered: 1 week ago

Question

★★★★★
What experience you have with computers and taking online courses. Are you ready to get certified in Network , and how might doing so help you with a future job and/or career

Answered: 1 week ago

Question

★★★★★
Doyen Constructions Pty Ltd is a multinational construction and property investment company based in Sydney. After failure to make profits from a number of construction projects with major commercial...

Answered: 1 week ago

Question

★★★★★
Take notes throughout the ELO then complete the following questions that apply to your selected event. (you can develop your own questions that explain your experience attending the event) 1. Explain...

Answered: 1 week ago

Question

★★★★★
Assume that you are 30 years old today and expect to retire when you reach age 65. If you were to retire today, you would like a fixed (pretax) income of $60,000 per year (in addition to Social...

Answered: 1 week ago

Question

★★★★★
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...

Answered: 1 week ago

Question

★★★★★
Record the following events of Mental Health Clinic, a VHWO: 1. A contribution of $20,000 was received and is to be used for the purchase of equipment, but not until an addition to the building is...

Answered: 1 week ago

Question

★★★★★
The following information pertains to Palmer Townships construction and financing of a new administration center: Estimated total cost of project ... .. . . . .. .. .... .. ... . . .. . . . . .. . ....

Answered: 1 week ago

Question

★★★★★
Under what circumstances might a salary or bonus be more appropriate than interest on capital balances as a means of allocating profits?

Answered: 1 week ago

Question

★★★★★
Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31,...

Answered: 1 week ago

Question

★★★★★
Pam has a $27,000 basis (including her share of debt) in her 50% partnership interest in the Meddoc partnership before receiving any distributions. This year Meddoc makes a current distribution to...

Answered: 1 week ago

Question

★★★★★
Two years ago, Kimberly became a 30% partner in the KST Partnership with a contribution of investment land with a $10,000 basis and $16,000 fair market value. On January 2 of this year, Kimberly has...

Answered: 1 week ago

Previous Question Next Question