Part B

SSP Ltd provides a motor vehicle for private use to one of its employees at the start of Year 1. The motor vehicle cost $45,000 (GST exclusive). SSP Ltd is registered as an annual filer. The Motor vehicle was not available for the employees use for 12 days during the year when it was being serviced or repaired. During Year 1 the employee contributed $1,500 towards the running cost of the vehicle.

Required:

Calculate the taxable value of the motor vehicle benefit using the cost price option for Year 1. Show all workings. (4 marks)