What the fbt payable on the fringe benefits provided

Reference no: EM132724362

Hillcrest Limited files FBT returns on a quarterly basis. The company provides the following fringe benefits during the year to the managing director (who is not a major shareholder of the company):

Availability for private use of a motor vehicle (taxable value of $8,000 per quarter)
Medical insurance (taxable value of $4,500 per quarter)
Free goods (taxable value of $2,500 per quarter).

Problem 1: The managing director has a salary of $250,000 per annum. The company decides to carry out the full alternate rate calculation in the fourth quarter. Under the alternate rate calculation, the motor vehicle, medical insurance premiums and free goods are all required to be attributed to the managing director. The FBT payable on the fringe benefits provided to the managing director under the alternate rate calculation is:

Select one:

a. $57,170
b. $95,541
c. $27,133
d. $29,545

Reference no: EM132724362

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