Question 1 Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita's usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs. Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question QUESTION 1: Calculate the FBT liability for Perisher Pty Ltd. Weighting Identification of material facts (issues) regarding fringe benefits provided to Nikita Identification and analysis of legal issues / legal question and relevant taxation law in regards to fringe benefits (e.g. FBTAA 1986). Thorough application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Perisher's case. Accurate conclusion of the FBT calculation. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. QUESTION 2 - Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets: 1. AntiquePaintingthatwasgiventoTarynbyherfather5yearsago.Taryn'sfatherboughtiton20August 1984 for $2,500. Taryn sold it on 1'st June 2020 for $25,000 2. Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20'th May 2020, she bought on 1'st January 2015 for the amount of $20,000 3. Taryn sold her Harry Potter's collection for the amount of $1,500 on 4'th January 2020, she bought it second hand on 10'th October 2018 for $350. 4. Taryn sold her gold necklace for $2,000 on 20'th March 2020, she bought it for $1,200 on 8'th August 2018 5. Tarynsoldasculpturefor$6,000on1January2020,sheboughtitonDecember1994for$1,500 Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question QUESTION 2: Capital gain tax consequences. Weighting Identification of material facts on regard to each case Identification and analysis of legal issues / legal question and relevant taxation law for each case. Thorough application of ITAA 1997 to material facts. Accurate conclusions are reached from each case. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

Question 1 Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita's usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs. Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question QUESTION 1: Calculate the FBT liability for Perisher Pty Ltd. Weighting Identification of material facts (issues) regarding fringe benefits provided to Nikita Identification and analysis of legal issues / legal question and relevant taxation law in regards to fringe benefits (e.g. FBTAA 1986). Thorough application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Perisher's case. Accurate conclusion of the FBT calculation. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. QUESTION 2 - Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets: 1. AntiquePaintingthatwasgiventoTarynbyherfather5yearsago.Taryn'sfatherboughtiton20August 1984 for $2,500. Taryn sold it on 1'st June 2020 for $25,000 2. Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20'th May 2020, she bought on 1'st January 2015 for the amount of $20,000 3. Taryn sold her Harry Potter's collection for the amount of $1,500 on 4'th January 2020, she bought it second hand on 10'th October 2018 for $350. 4. Taryn sold her gold necklace for $2,000 on 20'th March 2020, she bought it for $1,200 on 8'th August 2018 5. Tarynsoldasculpturefor$6,000on1January2020,sheboughtitonDecember1994for$1,500 Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question QUESTION 2: Capital gain tax consequences. Weighting Identification of material facts on regard to each case Identification and analysis of legal issues / legal question and relevant taxation law for each case. Thorough application of ITAA 1997 to material facts. Accurate conclusions are reached from each case. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

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

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita's usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges.

For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs.

Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question

QUESTION 1: Calculate the FBT liability for Perisher Pty Ltd. Weighting

Identification of material facts (issues) regarding fringe benefits provided to Nikita

Identification and analysis of legal issues / legal question and relevant taxation law in regards to fringe benefits (e.g. FBTAA 1986).

Thorough application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Perisher's case.

Accurate conclusion of the FBT calculation.

Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

QUESTION 2 -

Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets:

1. AntiquePaintingthatwasgiventoTarynbyherfather5yearsago.Taryn'sfatherboughtiton20August 1984 for $2,500. Taryn sold it on 1'st June 2020 for $25,000

2. Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20'th May 2020, she bought on 1'st January 2015 for the amount of $20,000

3. Taryn sold her Harry Potter's collection for the amount of $1,500 on 4'th January 2020, she bought it second hand on 10'th October 2018 for $350.

4. Taryn sold her gold necklace for $2,000 on 20'th March 2020, she bought it for $1,200 on 8'th August 2018

5. Tarynsoldasculpturefor$6,000on1January2020,sheboughtitonDecember1994for$1,500

Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question

QUESTION 2: Capital gain tax consequences. Weighting

Identification of material facts on regard to each case

Identification and analysis of legal issues / legal question and relevant taxation law for each case.

Thorough application of ITAA 1997 to material facts.

Accurate conclusions are reached from each case.

Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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