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Martha is employed by an accounting firm. Her employer provides her with a stereo system, which it purchased from a third party at arms length

Martha is employed by an accounting firm. Her employer provides her with a stereo system, which it purchased from a third party at arms length for $2000. Martha contributes $500 towards the stereo system. i. What type of fringe benefits is this? (1 mark) ii. What is the taxable value of the fringe benefit?

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