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# 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.
1
2018-05-11T11:19:08-0400
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.

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