Calculating the motor vehicle expense


Response to the following problem:

From the following information, calculate the motor vehicle expense for Mr. John Schofield with all available alternatives and select the most appropriate option for tax purpose.

He bought a Honda Accord for $28,000 on 25th July 2013. It has an engine capacity of 2.6 litres. In the current financial year he has travelled 22,000 km in total. He has kept a log book that shows 18,000 km is for work purpose. He has incurred the following expenditures for the motor vehicle:

· Petrol: $1600

· Depreciation: $2812

· Registration: $350

· Insurance: $600

 Tyres and Battery: $1075

· Servicing: $525

He has all the records for expenses.

 

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Taxation: Calculating the motor vehicle expense
Reference No:- TGS02110632

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