View the step-by-step solution to:

QUESTION 2 - FBT Calculation Question (10 Marks) Jack is the state sales representative for Quantum Vaccum Cleaners Pty Ltd ("QVC"), a supplier and...

QUESTION 2 - FBT Calculation Question (10 Marks)

 

Jack is the state sales representative for Quantum Vaccum Cleaners Pty Ltd ("QVC"), a supplier and retailer of vacuum cleaners. On 1 October 2017, QVC supplied Jack with a car valued at $65,000 for work which was garaged at Jack's home on the weekends.

 

Also on 1 December 2017, QVC loaned Jack $10,000 at 2% interest pa and provided him with a vacuum cleaner which retails for $2,000.


In this context, would the vacuum that was provided to Jack be a gift, a tool of the trade or something different? And if it is a gift or something different how would you calculate it for FBT purposes?

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question