Question 1 determine whether the following benefits are

Assignment Help Cost Accounting

Reference no: EM13377323

Question 1 Determine whether the following benefits are fringe benefits or exempt fringebenefits and, where applicable, the relevant category of fringe benefit. Providereasons for your answer:

a) Kerry is an employee of the university. She is provided with 10 giftvouchers worth $50 each for use at the local supermarket as a Christmasgift. Advise Kerry and the University of the Tax Consequences of thistransaction.

b) Sorella borrowed $10,000 from her employer on 4 September 2011 asher home was damaged in a freak storm. The loan was provided at nointerest. On 15 January 2012, her employer informed Sorella that shewas only required to repay half the loan. Advise Sorella and heremployer of the Tax Consequences of this transaction.

c) Penny is employed as a secretary by a law firm. As part of herremuneration package, the firm agrees to provide her with legal servicesin relation to her divorce at a 60% discount to its normal rates. The firmalso purchases a plasma TV set for $5,500 (inclusive of GST), which itgives to Penny. Explain how the taxable value of these fringe benefitswill be calculated.

Question 2. Peter sold an investment property in Sydney and the transaction was settledon 30 June 2012 for $800,000. He incurred legal fees of $1,100 and a realestate agent's commission of $9,900 in relation to the sale. Peter purchasedthe investment property in March 1987 for $100,000. He paid $2,000 in stampduty on the transfer and incurred legal fees of $1,000 in relation to thepurchase.

a) Calculate the capital gain under the indexation method.

b) Calculate the capital gain under the 50% discount method.

c) Which method should be used in this case?

Reference no: EM13377323

Questions Cloud

Graph long-run equilibrium to include mc ac d and mr to : graph long-run equilibrium to include mc ac d and mr to answers for questions 1 through 41. perfect competition2.

1 all of the questions in this part refer to the market for : 1 all of the questions in this part refer to the market for jelly doughnuts. all questions are concerned only with the

1 the following is a linear programming formulation of a : 1. the following is a linear programming formulation of a labor planning problem. there are four overlapping shifts and

If demand in the united states is given by q1 7200 - 300p1 : if demand in the united states is given by q1 7200 - 300p1 where p1 is the price in the united states and if the

Question 1 determine whether the following benefits are : question 1 determine whether the following benefits are fringe benefits or exempt fringebenefits and where applicable

A profit-maximizing monopoly faces an inverse demand : a profit-maximizing monopoly faces an inverse demand function described by the equation py 50 - y and its total costs

If the demand schedule for bongs book is q 2000-100p the : if the demand schedule for bongs book is q 2000-100p the cost of having the book typeset is 9000 and the marginal cost

Prevent controls alabama industries manufactures and : prevent controls alabama industries manufactures and wholesales small tools. it sells the tools to a large group of

Historically shifts towards a more expansionary monetary : historically shifts towards a more expansionary monetary policy have often been associated with increases in real

User Account

All Pages