Question
In July 2019 Deena Maguire was hired by La Leche as a brand manager, a manufacturer of baby formula. As part of the renumeration negotiation,
In July 2019 Deena Maguire was hired by "La Leche" as a brand manager, a manufacturer of baby formula. As part of the renumeration negotiation, Deena has 3 options: A. $150,000 Salary + $30,000 tuition fee for her children at Ivanhoe Grammar School + $2,000 mobile phone bill + $100,000 loan benefit1 B. $100,000 Salary + $50,000 Mazda CX-3 2+ Rental free in company property for the duration of her employment contract at Preston3 C. $180,000 Salary Required: 1. Advise Deena Maguire on assessable income of every options for the income year ending 30 June 2020, applying legislation, case law and tax rulings to support your answer. Which one of all the options that produce the lowest assessable income for Deena? 2. Calculate Fringe Benefit Tax for FY 2019/20 Deena Employer for every option. 3. During 2019/20 financial year, Deena decide to sell: a. Her old car for $20,000 (originally, she purchased it for $30,000 in 2015), b. Her collectible painting for $50,000 (Originally purchased for $550 in 1990) c. 1000 Telstra shares and 2000 NAB shares for $20,000 and $30,000, respectively. She originally purchased them in 2016 for $30,000 and $40,000, respectively. Advise Deena Maguire on assessable income based on transactions in part 3 and she decided to go with option C ($180,000 Salary) for the income year ending 30 June 2020, applying legislation, case law and tax rulings to support your answer.
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