On 1 April 2016, QP Pty Ltd (QP) purchased a new sedan car for $50,000, the car was for the exclusive use of Sam, the associate director. On the day of purchase a rear parking camera was fitted to the car at a cost of $5,000. Between the date of purchase and 31 March 2017, Sam travelled 30,000 kilometres in the car.. QP paid all the expenses except petrol of $1350 was paid by Sam. The amount was not reimbursed and Sam provided the required declaration to his employer. QP is entitled to claim the input tax credits for GST purposes. Required: Advise the FBT to be paid by QP in relation to the car for year ended 31 March 2017

On 1 April 2016, QP Pty Ltd (QP) purchased a new sedan car for $50,000, the car was for the exclusive use of Sam, the associate director. On the day of purchase a rear parking camera was fitted to the car at a cost of $5,000. Between the date of purchase and 31 March 2017, Sam travelled 30,000 kilometres in the car.. QP paid all the expenses except petrol of $1350 was paid by Sam. The amount was not reimbursed and Sam provided the required declaration to his employer. QP is entitled to claim the input tax credits for GST purposes. Required: Advise the FBT to be paid by QP in relation to the car for year ended 31 March 2017

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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