QUESTION 7

1. Noodles Pty Ltd purchased a car on 1 July 2020 that was available for the sole use of its Jae, the ICT manager. Jae parked the car at her home each night except for a period of 14 days while the car was being repaired after an accident. Details relating to the car are as follows: (Total 10 Marks) $ Cost of the car 48,000 Business travel percentage as per logbook 30% Insurance and registration (cost per month) 140 Petrol & Oil (includes $420 paid by the employee) 1,400 Car service and maintenance costs 360 Repairs (10/03/2021) 1,200 All necessary declarations were received and all costs include GST were relevant. Required: i) Calculate the taxable value of the car fringe benefit for the 2021 Fringe Benefits Tax year using two alternative methods. Show all working. 8 marks ii) Calculate the minimum Fringe Benefits Tax payable by Noodles in respect of the above car fringe benefit. Noodles is registered for GST. Show all working. 2 marks