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Bandile Mkhize received a travelling allowance of R20 000 a month. Bandile does not

Bandile Mkhize received a travelling allowance of R20 000 a month. Bandile does not

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q1.

Bandile Mkhize received a travelling allowance of R20 000 a month. Bandile does not keep accurate records of expenses, but he keeps accurate records of actual business distances travelled. He travelled 33 800 km in total during the year with his own vehicle, of which 23 100 km was for business purposes. Bandile, drives a V Wagon which he purchased for R800 000 (including VAT). The total deemed cost is accurately calculated as 702,5c per km. YOU ARE REQUIRED to calculate the taxable fringe benefit received by Bandile. Select one: a. R162 278 O b. R240 000 OcR75 168 Ⓒd. R77 723
Transcribed Image Text:Bandile Mkhize received a travelling allowance of R20 000 a month. Bandile does not keep accurate records of expenses, but he keeps accurate records of actual business distances travelled. He travelled 33 800 km in total during the year with his own vehicle, of which 23 100 km was for business purposes. Bandile, drives a V Wagon which he purchased for R800 000 (including VAT). The total deemed cost is accurately calculated as 702,5c per km. YOU ARE REQUIRED to calculate the taxable fringe benefit received by Bandile. Select one: a. R162 278 O b. R240 000 OcR75 168 Ⓒd. R77 723
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