Bob employs a part-time administrative assistant, Ann. Ann needs to have her wisdom teeth removed by a dentist and Bob is considering providing Ann with the following benefits:

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Question 4 (5+5+10 marks = 20 marks)

(a) A Nintendo Switch to entertain Ann while she is recovering. This will cost Bob $300 (including

GST)

(b) Payment of the cost of Ann getting her wisdom teeth removed by a dentist- $750

How much fringe benefits tax would he have to pay in relation to the provision of these benefits? 5 marks

Part B

What tax deductions could Bob claim in relation to providing these benefits to his assistant?

Assume that Bob is registered for

5 marks