Garry is employed by a furniture retailer.Gerry’s employer allowed him to purchase floor stock for $2200 (inclusive of GST).The same floor stock would ordinarily be sold to customers for $8800

Q1. Emma designs and makes trendy jeans for teenagers.She sells the jeans exclusively through a friend’s shop.Her books of account provide the following information:

1 July 30 June
Completed jeans ready for sale $5,000 $7,000
Partly completed jeans $1,000 Nil
Jeans material $4,000 $500
Zips $900 $60
Total purchases of jeans material during the year=$5,000
Total purchase of zips during the year=$2,000
Total sales of jeans during the year=$25,000
Fees to accountant=$250
Rental of premises=$1,000

Advise Emma of her tax consequences arising from the above information.

 

Q2.Garry is employed by a furniture retailer.Gerry’s employer allowed him to purchase floor stock for $2200 (inclusive of GST).The same floor stock would ordinarily be sold to customers for $8800.

Requirement:

What is the taxable value of this fringe benefit?

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