On 1 April of the current FBT year, Rex Bolton received a new Mazda CX-9 from his current employer OMEGA Pty Ltd, an IT solution company. The value of the car is $42,000. The total monthly cost including the lease and other running costs are $1,520 per month.

During the current FBT year, Rex travelled 26,000 km (he has maintained a logbook), of which 70% were for business purposes.

Required:

Analyse and explain the above situation for the benefit provided to Rex Bolton by his employer. Apply a suitable option by comparing all the available calculation methods to reduce the tax liability for OMEGA Pty Ltd.

In your analysis, you are required to show the step-by-step FBT calculations and advise Rex of the suitable option.