Sharon Stone is a marketing consultant for a major food distribution company. On 1 September 2015, she purchased a new silver BMW 320i convertible with a personalised name plate for $95,000. She uses the vehicle when visiting clients. The car has an estimated effective life of seven years and has been depreciated using the prime cost method.

She maintained a log book for a 12 week period and all receipts have been kept.

Required:

a): She provides you with the following information relating to the year ended 30 June 2016 and wants you to work out the maximum deduction that she can claim for the use of the car, using all available substantiation methods:

Total kilometers traveled 15,000

Business kilometers traveled 8,000

Interest on car loan 2,800

Registration and insurance 680

Petrol 1,720

Repairs and maintenance 375

Car washes 180

Parking fines (while visiting clients) 350

NRMA membership 230

b): She seeks your advice as to whether the cost of road-tolls (including bridge tolls) that she incurred would be deductible as a car expense or as a general deduction? Would it make any difference if the deduction was claimed under either one of these headings?