You are the junior accountant at CBW Bank. You have been asked to assist with the 30 June 2020 tax work:

i)The Bank provided loans totaling $5,000,000 in mortgage loans, equally to 10 of its staff during the year. These loans were interest only repayments and were made at arm's length, at an interest rate of 5.37%.

ii)Due to a staff restructuring at the bank, 3 of the staff who took mortgage loans were made redundant on 30 November 2019. Due to financial hardship on these 3 staff, the Bank waived the interest on the loans for a period of one year.

iii)The bank paid the mobile phone bills for these 10 staff during the current tax year. The monthly bill per staff member was $69.

Required:

1)Calculate FBT liability for the loans. Show all workings. (3 marks)

2)Calculate FBT liability for the mobile phone. Show all workings. (2 marks)