Josh Duhamel's remuneration does not include commission. He enjoys four fringe benefits as part of his salary package. These fringe benefits are An entertainment allowance A travel allowance, A low interest loan, A residential accommodation, and Certain telephone benefits Entertainment Allowance An entertainment allowance of R1 000 is awarded to Josh Duhamel each month by Fast & Furious (Pty) Limited, his employer. He kept detailed records of his entertainment expenses. They were R9 300 in the 2022 year of assessment. Included in this R9 300 is his Entrance fee of R2 400, and Annual membership subscription of R850, Both paid to the local country club. Travel allowance Josh Duhamel is awarded R18 500 a month by Fast & Furious (Pty) Limited as a travel allowance as part of his salary package. On 01 March 2021, he purchased a motor car for R805 000 (R700 000 plus VAT of R105 000). His actual expenses incurred on this motor car for the 2022 year of assessment were as follows: License 900 Insurance 27 000 Tracker security costs 3 000 Maintenance 18 000 Fuel (petrol and oil) 149 100 total 198 000 During the 2022 year of assessment, Josh Duhamel's travelled a total of 39 000 kilometres in this motor car. He has kept data of his private travelling and can prove that his private travelling for the 2022 year of assessment was 9 750 kilometres. Josh Duhamel will elect the method of calculating the travel allowance inclusion that is most tax efficient to him. Residential Accommodation Josh Duhamel enjoys free use of a four-bedroomed house purchased by Fast & Furious (Pty) Limited for R1 960 000 for himself and his family. All water and electricity costs are settled by the employer in full. These costs were R43 200 for the 2022 year of assessment. Fast & Furious also spent R124 000 on appliance and furniture for the house. Josh Duhamel enjoys a "once-off" allowance of R30 000 on 01 March 2021 from his employer to enable him to purchase certain additional "soft furnings" (curtaining and linen) for this house. These items are his property. Josh Duhamel's remuneration proxy is R540 000. Telephone Benefits Fast & Furious (Pty) Limited settles his monthly home telephone account. During the 2022 year of assessment it paid R18 600 (incurred evenly over the year). He has estimated that 60% of his home telephone account is for business purposes. Josh Duhamel also has free use of a cellular phone owned by Fast & Furious (Pty) Limited. Rental and call expenses incurred by it during the 2022 year of assessment were R14 400. These expenses were incurred evenly throughout the year. Although he uses the cell phone for private purposes, it does not charge him for private calls, since his private use of this cellular phone is incidental to business use. REQUIRED: 1.1 You are required to discuss, with supporting calculations the taxable portion of the above fringe benefits to be included in Josh Duhamel's taxable income. Use the following subheadings and mark scheme as a guideline: o Entertainment allowance (5) o Travel allowance (18) o Residential accommodation (7) o Telephone benefits (5)