Reference no: EM132662961
Question - Electro Specialists Pty Ltd purchased a new vehicle for their employee Harry to use for both work and private purposes on 1 November 2019. The car cost $42,000 and they paid an extra $400 to have a tow bar installed and $3,000 to have a tray cover made and installed before the vehicle was delivered. The car was provided to Harry for his use (both work and private) from that date. Harry was required to keep a logbook. This showed that 10,000 km were travelled for a twelve-week period during 1 January - 25 March 2020, and of these, 4,000 km were for business purposes.
Unfortunately, in early December Harry was involved in a traffic accident, which caused a substantial amount of damage to the vehicle. The repairs cost $2,750 (which was covered by insurance) and the car was off the road for 7 days while the repairs were being done.
Other expenses incurred by Electro Specialists Pty Ltd relating to the vehicle were:
Registration & insurance $1,200 (for 12 months), which was paid on 1 November 2019
Fuel: $4,000
Harry paid out $500 for petrol and oil to the local service station in respect of the vehicle and is able to substantiate these payments. Harry also contributed to the car insurance by paying $300 directly to Electro Specialists.
Note that Electro Specialists Pty Ltd is registered for GST and that where relevant the costs mentioned above include GST.
Electro Specialists Pty Ltd has elected to use the operating cost basis under section 10 FBTAA for the vehicle.
Electro Specialists Pty Ltd also pays Telstra directly for Harrys' mobile phone expenses from 1st November to 31 March which equates to $2,200 (inc GST) - as he uses his own mobile phone for work purposes. Harry estimates that 30% of his mobile phone use is for work purposes.
Required -
(1) Work out whether Electro Specialists Pty Ltd has an FBT liability in respect of providing the vehicle to Harry and for paying Harry's Telstra mobile phone bill. If they do, calculate how much that liability would be for the 2020 FBT year.
(2) Work out if Harry would have a reportable fringe benefit in respect of the vehicle provided to him and the mobile phone payment by Electro Specialists.
|
BAO2203 Corporate Accounting Assignment
: BAO2203 Corporate Accounting Assignment Help and Solution, Victoria University - Assessment Writing Service - Consolidation, impairment and Intragroup
|
|
Significance of digital signatures in cyberspace
: In this module, we have explored surge of e-commerce and escalation of online contracts. what is the impact and significance of digital signatures in cyberspace
|
|
Describe hypothetical situation
: Describe a hypothetical situation in which a legitimate organization used spam in an effective and nonintrusive manner to promote a product or service.
|
|
Discuss the data wiping process
: Define and discuss the data wiping process. Discuss how a cloud-based solution provider may reduce the risk of a DDoS attack.
|
|
Work out if Harry would have a reportable fringe benefit
: Work out if Harry would have a reportable fringe benefit in respect of the vehicle provided to him and the mobile phone payment by Electro Specialists
|
|
Baseline security requirements
: What are baseline security requirements that should be applied to the design and implementation of applications, databases, systems, network infrastructure,
|
|
What factors should an auditor take regarding events
: Explain what is subsequent events. What factors should an auditor take regarding events that have occurred after the financial report is issued
|
|
How should an employer obligation for employee benefits
: According to AASB 119, how should an employer's obligation for employee benefits be measured? Provide the journal entries in the books of Shelley Ltd
|
|
Keylogging or keyboard capturing
: Keystroke logging, often referred to as keylogging or keyboard capturing, is the action of recording (logging) the keys struck on a keyboard,
|