In respect of each benefit you are required to:

• specify the category and the applicable division of the Fringe Benefits Tax Assessment Act 1986 (FBTAA);
• provide section references of the FBTAA for each part of your calculation; and
• indicate whether the benefit is a Type 1 or Type 2 benefit and state the reason.

Reasons for any exclusions must also be provided.

Michael - a salesman who mainly serviced shops in Perth.

a)A BMW sedan which was leased at a cost of $800 per month.It cost $95,000.His work-related use was 65% based on his logbook.Fuel totalled $8,100, insurance and registration were $2,700 (paid on 1 April 2019).Michael did some minor damage to the car and paid $1,200 to have it repaired.He took all of November 2019 and December 2019 on a combination of Annual and Long Service Leave.He went overseas and left the car at the employer's premises.

b)A diamond bracelet with a retail value of $10,800 he gave as a gift to his wife for her 50^th birthday.WBG was able to buy it from another business at a reduced price of $7,500.Michael was required to pay $5,000.

c)Christmas and birthday gifts, he bought for family and friends.He paid $6,800 for gifts which WBG would have sold to its customers for $10,000.In turn, the customers would have sold them at retail for $15,000.He had salary sacrificed this amount.

d)Membership of the Salespeople Association.It cost Michael $400 all of which was re-imbursed by WBG.

REQUIRED:

Complete working papers showing how you have calculated the taxable value of each benefit provided.Include in your working papers references to the FBT legislation for each benefit provided and provide reasons and explanations for any items which you exclude from the calculations.Calculate the FBT payable by World's Best Gifts Pty Ltd.