Kelly is an employee at Holmes Pty Ltd (Holmes). She has negotiated the following remuneration package with Holmes: 

• Salary of $220,000; 

• Payment of Kelly's mobile phone bill ($119 per month, including GST). Kelly is under a two-year contract whereby she is required to pay a fixed sum each month for unlimited usage of his phone. Kelly uses the phone for work-related purposes only; 

• Payment of Kelly's children's school fees ($35,000 per year). The school fees are GST free. (2 Marks) Holmes also provided Kelly with the latest Ipone 20, which cost $1,980 (including GST). 

(a) Advise Holmes of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2020. Assume that Holmes would be entitled to input tax credits in relation to any GST-inclusive acquisitions. (GST Registered)