Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

correct solutions please thanks Sharon Stone is a marketing consultant for a major food distribution company. On 1 September 2020, she purchased new silver BMW

image text in transcribed

image text in transcribed

correct solutions please thanks

Sharon Stone is a marketing consultant for a major food distribution company. On 1 September 2020, she purchased new silver BMW 320i convertible with a personalised name plate for $95,000. She uses the vehicle when visiting clients. The car has an estimated effective life of seven years and has been depreciated using the prime cost method. She maintained a log book for a 12 week period and all receipts have been kept. Required: a): She provides you with the following information relating to the year ended 30 June 2021 and wants you to work out the maximum deduction that she can claim for the use of the car, using all available substantiation methods: Total kilometers traveled Business kilometers traveled 15,000 8.000 2,800 680 1,720 Interest on car loan Registration and insurance Petrol Repairs and maintenance Car washes Parking fines (while visiting clients) NRMA membership 375 180 350 230 b): She seeks your advice as to whether the cost of road-tolls (including bridge tolls) that she incurred would be deductible as a car expense or as a general deduction? Would it make any difference if the deduction was claimed under either one of these headings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Corporate Financial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

13th edition

1285868781, 978-1285868783

More Books

Students also viewed these Accounting questions

Question

Determine A in the indicated figures. Fig. 2.40 (a) A 84 (a) 40 B

Answered: 1 week ago

Question

What tasks will you choose to start?

Answered: 1 week ago