Calculate the taxable value of the fringe benefit using the statutory formulain the following case context:Nancy provided her employee (William) with the use of a Toyota Pajero car 216 days during the Fringe Benefit Tax year. During the period, the car travelled 12,000 km. Nancy purchased the car last year for $65,000. William contributed $2,000 towards the cost of running the car and has provided Nancy with relevant documentation.(6 marks) (Maximum 250 words) Rory is a staff of a furniture manufacture company. His employer allowed him to purchase an office table for $ 1,200. The table would ordinarily be sold to customers for $1,800. Calculate the taxable value of the fringe benefit.

Qualified employees discount can be maximum upto 20% of the market price of goods

Answered: Calculate the taxable value of the…

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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1. Calculate the taxable value of the fringe benefit using the statutory formulain the following case context:
Nancy provided her employee (William) with the use of a Toyota Pajero car 216 days during the Fringe Benefit Tax year. During the period, the car travelled 12,000 km. Nancy purchased the car last year for $65,000. William contributed $2,000 towards the cost of running the car and has provided Nancy with relevant documentation.(6 marks) (Maximum 250 words)

Rory is a staff of a furniture manufacture company. His employer allowed him to purchase an office table for $ 1,200. The table would ordinarily be sold to customers for $1,800. Calculate the taxable value of the fringe benefit.

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

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