Problem on bank employee and her job includes travelling


Question: Barbara works as a bank employee and her job includes travelling to visit customers who are interested in taking out a mortgage loan. Her remuneration package includes a base salary and commission and the bank does not provide her with any allowance nor reimbursement for travel expenses. In 2021/22, Barbara reasonably estimates that she travelled a total of 7,500 business kilometres in visiting customers in the course of her work. She has never kept a log book in relation to her car travel. In relation to the above, which of the following statements is correct? a. Barbara cannot claim a deduction for car expenses because she did not keep a log book. b. Barbara can claim a deduction for car expenses of $5,400. c. Barbara can claim a deduction for car expenses of $3,600. d. Barbara can use her reasonable estimate to claim a car expenses deduction under the log book method. e. Barbara can claim a deduction for car expenses of $1,800.

 

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Accounting Basics: Problem on bank employee and her job includes travelling
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