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QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22 000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr. X kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount of the travel allowance to the greatest

QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22 000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr. X kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount of the travel allowance to the greatest

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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QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22 000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr. X kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount of the travel allowance to the greatest
Transcribed Image Text:QUESTION 1 Mr. Thomas owns a motor vehicle that cost him R120 000, inclusive of VAT but exclusive of any finance charges. He received a travel allowance of R1 600 a month from his employer during a year of assessment. He travelled 22 000km in the vehicle during the 2017 year of assessment of which 4 000km was travelled for business purposes. Mr. X kept an accurate logbook. The following actual costs (which include VAT where applicable) were incurred by Mr. Thomas. Fuel cost R8 000 Maintenance costs 4 000 Insurance 2 400 Finance costs 12 000 License cost 400 Calculate the taxable amount of the travel allowance to the greatest
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