Fringe Benefit Finance Assignment Help With Solution

Fringe Benefit Tax

Exercise 1

Brick & Tile Ltd is a building outfit. Their IRD number is 35-901-222. The company files FBT returns on a quarterly basis and elects to pay fringe benefit tax at a single rate of 49.25% on all benefits.

Brick & Tile Ltd had the following transactions during the quarter ended 31 December 2012. There are 92 days in the December quarter.

Note: All of the following amounts are inclusive of GST where appropriate.

Motor vehicles During the quarter ending 31 December 2012 Brick & Tile Ltd had the following motor vehicles;

Vehicle detailsCost (incl GST)
2008 Ford Falcon (Registration number TX 529)$55,500 2009 Mitsubishi Fuso (Registration number MN6953)$69,200

The Ford Falcon was available for Jane Gudsell’s (an employee) private use and enjoyment at all times. During the quarter the vehicle was in the workshop for 5 days. It was used to make one emergency call on the weekend and another one on a public holiday. It was taken away on a selling trip for 8 days.

The Mitsubishi Fuso is a light-weight truck weighing 4.8 tonnes. James, an employee of Brick & Tile Ltd, takes the truck home with him every night for convenience.

Loans

During the quarter ending 31 December 2012 Brick & Tile Ltd had the following loan with an employee, Bob Jones. The loan was originally granted in 2010.
As at 1 October 2012 Bob’s loan balance was $25,000. During the quarter Bob did not make any repayments. Interest is currently being charged at 4% per annum.

Provision of Goods and services
During the quarter ending 31 December 2012, Brick & Tile Ltd provided the following goods and services to the named employees.

Graham Smith

Brick & Tile Ltd provided discounted building materials to Graham for $400, which cost the employer $550 to produce and is usually sold to the public for $750.

Tanya Gray

Brick & Tile Ltd provided discounted building materials to Tanya for $300, which cost the employer $250 to purchase and is usually sold to the public for $350.

Louis Patterson

Brick & Tile Ltd put in a fish pond at Louis’ private premises for free. The normal cost to the public is $800.

Dave Taylor

Brick & Tile Ltd provided Dave with the all of the necessary material to build a fence for his property for $275. The materials cost the employer $325.
Note: no other goods and services have been provided in the preceding two FBT quarters.

Entertainment

A new employee (Gavin Lovett) arrived from South Africa during the year and is currently renting a flat for $400 per week. Brick & Tile Ltd gives Gavin some restaurant vouchers as a welcome incentive. The value of the vouchers is $3,300.

Training Course

One of the sales representatives of Brick & Tile Ltd, Gregory Smith undertook a personal development course with “Skills R Us” which the company paid for (cost was $1,560). Brick & Tile Ltd encouraged him to go on the course as part of his professional development, and it did significantly improve his interaction with customers.

Accommodation

Each Brick & Tile Ltd’s three sales representatives spend around $300 per week for accommodation and meals, when they are away from home each FBT quarter. They use a company credit card to charge these expenses directly to the company.

Business Tools

Brick & Tile Ltd provided three of its sales representatives with laptops (to the value of $3,250 each).

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

Required:

a. Prepare Brick & Tile Ltd’s FBT taxable value calculation sheet (IR 427) and FBT return (IR 420) for the quarter ended 31 December 2012, using the forms provided. Show all workings on the form provided.

Exercise 2

Calculate the FBT value for each of the following:

1. Susan received $90,000 loan from her employer ABC Ltd on 20 November 2008. Interest is charged at 5% per annum. Sarah has not made any repayment since. There are 90 days in the quarter ended 31 March 2013.

2. TNT Ltd is preparing their FBT return for the quarter ended 31 December 2012. TNT provides the following benefits to the named employees;

▪ Ted Smith$500 Gift voucher
▪ Greg SpearsDiscounted clothing for $80 (cost to employer $250)
▪ Katie VoigtDiscounted clothing for $50 (cost to employer $70)
▪ Hayley PetersonTNT Ltd installed Hayley’s kitchen for free (normal cost
to the public $2,300)

3. Malcolm has the full use of a Mazda for which his employer has entered into a lease. At the time of entering the lease agreement the market value of the motor vehicle is $28,000. During the September quarter he had a three-day work trip away. There are 92 days in the September quarter.

Product Code :Fin104

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary