63 821
Assignments Done
99,4%
Successfully Done
In August 2018

# Answer to Question #77089 in Finance for mariyam

Question #77089
Eric provides his employee with the use of a car for 183 days during the FBT
year. During this period the car travelled 16,000 km. Eric purchased the car last
year for $50,000. The employee contributed$1,000 towards the cost of running
the car and has provided Eric with relevant documentation.
Requirement:
Calculate the taxable value of the car fringe benefit using the statutory
formula.
Eric provides his employee with the use of a car for 183 days during the FBT
year. During this period the car travelled 16,000 km. Eric purchased the car last
year for $50,000. The employee contributed$1,000 towards the cost of running
the car and has provided Eric with relevant documentation.
Statutory rate is 20% or 0.2.
The taxable value of the car fringe benefit using the statutory formula is:
(50,000*0.2*183/366) - 1,000 = 4,000.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!