Bells Pty Ltd sells telephone systems to the public and on occasion they sell off some of their old furniture to employees at 10% of its resale value. For the FBT year ended 31 March 2020, Bells Pty Ltd sold 10 items of furniture that a resale value of $5,000 in total. These items were sold to staff for $500. What is the taxable value of the sale of this furniture to employees?

Question

Quizplus · Accepted Answer

The taxable value of the sale of this furniture to employees is the difference between the resale value ($5,000) and the amount paid by the employees ($500), which is $4,500.

Bells Pty Ltd Sells Telephone Systems to the Public and on Occasion