Definition and Examples of Heat Energy

Most people use the word heat to describe something that feels warm, however in science, thermodynamic equations, in particular, heat is defined as the flow of energy between two systems by means of kinetic energy. This can take the form of transferring energy from a warm object to a cooler object. More simply put, heat energy, also called thermal energy or simply heat, is transferred from one location to another by particles bouncing into each other. All matter contains heat energy, and the more heat energy that is present, the hotter an item or area will be. Heat vs. Temperature The distinction between heat and  temperature  is  subtle  but very important. Heat refers to the transfer of energy between systems (or bodies), whereas temperature is determined by the energy contained within a singular system (or body). In other words, heat is energy, while temperature is a measure of energy. Adding heat will increase a bodys temperature while removing heat will lower the temperature, thus changes in temperature are the result of the presence of heat, or conversely, the lack of heat. You can measure the temperature of a room by placing a thermometer in the room and measuring the ambient air temperature. You can add heat to a room by turning on a space  heater. As the heat is added to the room, the temperature rises. Particles have more energy at higher temperatures, and as this energy is transferred from one system to another, the fast-moving particles will collide with slower moving particles. As they collide, the faster particle will transfer some of its energy to the slower particle, and the process will continue until all the particles are operating at the same rate. This is called thermal  equilibrium. Units of Heat The SI unit for heat is a form of energy called the joule (J). Heat is frequently also measured in the calorie (cal), which is defined as the amount of heat required to raise the temperature of one gram of water from 14.5 degrees Celsius to 15.5 degrees Celsius. Heat is also sometimes measured in British thermal units or Btu. Sign Conventions for Heat Energy Transfer In physical equations, the amount of heat transferred is usually denoted by the symbol Q. Heat transfer may be indicated by either a positive or negative number. Heat that is released into the surroundings is written as a negative quantity (Q 0). When heat is absorbed from the surroundings, it is written as a positive value (Q 0). Ways of Transferring Heat There are three basic ways to transfer heat: convection, conduction, and radiation. Many homes are heated through the convection process, which  transfers heat energy through gases or liquids. In the home, as the air is heated, the particles gain heat energy allowing them to move faster, warming the cooler particles. Since hot  air is  less dense than cold air, it will rise.  As the cooler air falls, it can be drawn into our heating systems which will again allow the faster particles to heat up the air. This is considered a circular flow of air and is called a  convection current.  These currents  circle  and heat  our homes. The conduction process is the transfer of heat energy from one solid to another, basically, two things that are touching. We can see an example of this can be seen when we cook on the stove. When we place the cool pan down on the hot burner, heat energy is transferred from the burner to the pan, which in turn heats up. Radiation is a process in which heat moves through places where there are no molecules, and is actually a form of electromagnetic energy. Any item whose heat can be felt without direct connection is radiating energy. You can see this in the heat of the sun, the feeling of heat coming off a bonfire thats several feet away, and even in the fact that rooms full of people will naturally being warmer than empty rooms because each persons body is radiating heat.

The Critical Analysis Of Sun Tzu s The Art Of War

The Critical Analysis of Sun Tzu’s the Art of War Introduction The leadership is an art which is based on invention, determination, irony, and a reflective identity (Grint, 2000). The Sun Tzu’s the Art of War is an ancient remaining military piece in the world and often considered the best. This book has powerful principles of human behavior and rules of conduct for military leaders. It also enumerates philosophies of war and how to win battles in any situation. The maxims of a Chinese legionnaires who lived more than 2000 years ago can help modern businesses be more successful (Business Horizons, 1994, p. 1). The Art of War has a theme that is surrounded to every other theme, especially in respect to knowing self and opposition. The Art of War Strategic Leadership Principles and Thinking If we can understand first few chapters of the Art of War, then we will learn many characteristics to apply to our strategic leadership. The Art of War principles of strategies are prudence and the need for good planning, before a decision to wage war is made. According to Shang Chang â€Å"the marketplace is a battlefield† for everyone in the business.(Cite? Shang Chang is not in the reference list) Therefore, many business experts believe the Asian business strategies are based on classical military principles (Chen, 1994, p. 1). Because the Art of War’s core subject is military strategy , it stresses the importance of analyzing all features of the situation before engaging inShow MoreRelatedThe Art Of War By Sun Tzu1867 Words   |  8 Pages THE ART OF HUMAN RESOURCES Kimberly M. Ayres University of Houston â€Æ' The Art of Human Resources The Art of War by Sun-Tzu, translated by Ralph Sawyer, has become a timeless roadmap to successful business management practices. This text provides valuables insights into human resources and the role it plays in the business environment today. 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Internal Analysis 7 3.1 SWOT Analysis 7 3.2 Implications of Assessment 9 4. Industrial Analysis 10 4.1 Perceptual Map of Disneyland Hong Kong amp; its competitors 10 4.2 Porter’s 5 Forces 11 4.3 Porter’s 5 Forces Overview 14 5Read MoreTelevision Programming : Public Broadcasting Station ( Pbs )1985 Words   |  8 Pagescrew and inspect the most important aspect of the structure: the foundation. According to the online Cambridge dictionary, a foundation is â€Å"the base that is built below the surface of the ground to support a building†, thereby making it the most critical aspect of the structure being built. Every contractor understands that without the proper base, the rest of the project is meaningless because it is only a matter of time before the building starts to crack, weakens, and in time collapses. On more

Best Buy in China Free Essays

string(31) " the end was acquired by Gome\." Best Buy’s failure in China is another example of a slow, arrogant major international player that didn’t understand China. Their own explanation of why they failed: â€Å"China’s demand for low prices without regard for service,† is clearly a lame excuse. By Fang Yu, China Entrepreneur magazine Best Buy shut down their nine stores in China on February 22nd, and within 48 hours fell into an unprecedented credibility crisis. We will write a custom essay sample on Best Buy in China or any similar topic only for you Order Now Customers rushed to Best Buy stores on hearing the news and were locked outside security doors. They finally broke through the doors and went into the shops, partly to seek refunds on the extended warranty policies they had purchased. Because of quarrels with staff over return policies, the Shanghai Municipal Government had to send police to maintain order. Best Buy, which has always boasted it was centered around consumers, never predicted it would withdraw from the Chinese market in such a disgraceful way. Best Buy China top executives said the business closed because their model did not adapt to the Chinese market. Best Buy China president David Sisson said, â€Å"I have never worked in such a price-sensitive market. † Best Buy shops within China were forced to close after a five year struggle Best Buy explains its failure with the excuse â€Å"Chinese consumers pursue low prices rather than services. † This excuse shows that Best Buy still does not understand why it failed. This excuse does not take into account that China’s spending power is the fastest growing in the world. Home appliance expert and director of the Pal consulting firm Luo Qingqi argues luxury brands now entering into Chinese second- and third-tier cities, and the purchasing power for luxury cars in Chinese inland is no worse than in the first-tier cities. Ding Jie, a global partner at the Roland Berger consulting firm, notes that there are foreign retailers running excellently China. Why not Best Buy? Slow and arrogant Dennis, who has worked for ten years selling audio products, worked as an employee at Best Buy until it shut its doors. After signing a compensation agreement, he began to seek a new job. He first came to a giant domestic chain giant to be interviewed, but he felt the treatment he received and business culture was too different from Best Buy, so he started looking for jobs at foreign retail enterprises. Dennis says the experience of working at Best Buy was profound and lasting. It’s difficult for him to adapt to the performance-oriented culture of domestic enterprises that stresses absolute obedience and brute execution. Instead, he has become used to Best Buy’s â€Å"people-centered† culture: trying to win returning customers and promotion opportunities based on giving good service. He also became used to the sound of the English name that the store provided him with. The employee culture of Best Buy, which is not based on sales volume, enables the store to be peaceful, without a feeling of fierce competition between the sales staff. However, observers believe this unhurried attitude is exactly what drove Best Buy to become a loser in China’s fiercely competitive home appliance market, which is dominated by the retailers Suning Appliance and Gome. When Best Buy entered China, Suning Appliance chairman Zhang Jindong said his company would ignore Best Buy for the next five years. Gome founder Huang Guangyu also said Best Buy could not compete with Gome in China because Best Buy did not have a sense of where to put its stores. People who participated in the press conference announcing the acquisition of Five Star Appliance by Best Buy in 2006 remember that Five Star founder Wang Jianguo was excited to announce the establishment of 300 stores annually with the financial backing of Best Buy. However, this plan was quickly denied by Best Buy top executives. Wang and his team eventually left the company. In the United States, Best Buy defeated the second-largest retailer Circuit City, which used a consignment model, similar to Gome and Suning in China. Best Buy then entered the Chinese market with the arrogance of a missionary, ignoring the gap between its own model and the Chinese market. In Best Buy stores, the aisles are clearly wider than in Suning and Gome, the shelves aren’t as crowded, and fewer brands and models are on display. Best Buy’ believes the space should be left for consumers rather than products. Suning Shanghai top executives pointed out North Americans prefer open and wide stores, and don’t require a wide range of product lines ranging from cheap and generic to expensive top quality brand names. Best Buy’s style is more suitable to North Americans emphasizing individual freedom, and China’s market is more similar to Japan’s. Insiders recalled Best Buy’s first China president Lu Weimin knew the local market very well. The Chinese-born American, who graduated from a special class of gifted teenagers of the University of Science and Technology of China, better understood the rules of China’s home appliance industry than his colleagues. Lu Weimin helped to bring about the acquisition of Five Star. This helped Best Buy become a major retailer. However, Best Buy still did not want to give up the business model it developed and was proud of, and dreamed of restructuring more home appliance retailers such as Five Star into the Best Buy fold. This resulted in a two-brand operation over the past five years, so that the Best Buy management team’s resources and focus were diluted. Five Star former top executives recalled Lu Weimin pushed Best Buy to expand. Lu chose several properties in Shanghai, but, following Best Buy’s management process, all matters related to store openings must be reported to Best Buy International. Best Buy’s competitors were opening a new store every four or five days. Faced with the slow process of opening new stores, Lu hoped he could use financial muscle to expand quickly. For instance, Best Buy bid for Shandong Sanlian Commercial, which in the end was acquired by Gome. You read "Best Buy in China" in category "Essay examples" Many foreign executives who are not familiar with the Chinese market have a hard time understanding the importance and feasibility of quickly opening stores. An investor said he had heard a foreign executive of a consumer goods company laugh at his Chinese colleagues, saying, â€Å"What? How dare they plan to open 200 stores a year! † In fact, these scoffers generally only ever come to Shanghai and Hong Kong and have no idea of the width of the Chinese market. Managed by Best Buy, Five Star has expanded slowly (the number of stores has only grown to more than 160 from nearly 140 in 2006). Lu left Best Buy in April 2007, after he was made a figurehead. He had worked there for more than ten years. When the news of the closure of Best Buy stores was released, a departed top executive pointed out that if the failure was a result of a poor business model, why did the Xujiahui store in Shanghai become one of the world’s top 50 stores, with an operating revenue of RMB 500 million, becoming profitable in 2010? The Xujiahui store’s property costs were denominated in U. S. ollars, and were the highest in the Best Buy system. One of the reasons for the success of the store was that its site was chosen when Wang Jianguo served as Best Buy global vice president. The superior location of the Xujiahui store was envied by competitors. Following in Wang Jianguo’s shoes, Best Buy sent many executives to China, who were good at IT system s and background management processes, but did not have experience in selecting sites and opening stores in unfamiliar cities. â€Å"We can say they are outsiders! At the root, it was caused by the people factor. If they had different people, the results would have been different. Missing its chance After stumbling through the first three years, Best Buy made some changes. In 2008, Best Buy started to speed up its expansion in China, opening in Shanghai, Suzhou, Hangzhou and Beijing to lift the total number of stores to nine. This change was rooted in a shift in government policy. In September 2008, the Ministry of Commerce issued a document shifting the approval process for foreign retail stores from the national to the provincial level. Best Buy, which had a good relationship with the Shanghai government, quickly opened more stores in Shanghai to consolidate its base. But compared with another retail giant, Wal-Mart, Best Buy again did not correctly understand the policy direction of the Chinese market. Wal-Mart quickly established wholly-owned companies (with taxes going to local authorities) in more than ten provinces in China, and quickly opened more than 30 stores in China in the first half of 2009, mainly in second- and third-tier cities. The new regulations of the Ministry of Commerce were intended to help foreign retailers make investments in China. The Shanghai market, where land is expensive, ended up putting a lot of pressure on Best Buy. At that time, Suning only allocated 10% of its planned stores to central Shanghai and focused on opening stores in the suburbs, but Best Buy was making efforts to squeeze into the core business district, which was already full of the rival stores. The result was that the number of Best Buy stores grew, but diminishing returns did not cover the operating costs. David Sisson hinted at this when he explained that he shut down all of the stores in China because â€Å"the costs needed to keep one or two stores open are actually are almost the same as the cost needed to keep nine stores open. Best Buy missed its window for rapid development, and perhaps had no time to think about how to enter more deeply into the Chinese market because it was struggling with strong competition and high land prices in first-tier cities like Shanghai. Best Buy top executives were aware of the problems with the company’s expansion. Under pressure to make profits in 2010 (the 2010 third-quarter fiscal report shows Best Buy same-store sales fell 5%), Best Buy first adjusted the company’s global management structure. Best Buy global vice president and Five Star CEO Wang Jian told China Entrepreneur, â€Å"In 2010, Best Buy adjusted the organizational structure and set up the America region, Asia region and Europe region. One major reason for the adjustment is that Best Buy wanted to give full authority to enable it to be more localized in operation and development. † At that time, Best Buy’s attitude to Five Star changed. Best Buy encouraged Five Star to â€Å"open as many as stores as possible,† but Five Star also faced the problem of lagging development. When Suning and Gome completed setting up in first- and second-tier cities and started planning to enter into third- and fourth-tier cities, Five Star was still only operating in limited areas and never opened stores in Shanghai. In Best Buy’s last days, the low-price commitment could be seen everywhere, and even the consumers could feel the change. Claire, a loyal Best Buy customer who works at a foreign company in Shanghai, said, â€Å"Compared with the beginning, the number of salespeople in the store grew obviously. In the past, when you looked around by yourself in the store, no one would bother you. But at the end,] if you stood in front of an item for a while, a salesperson would come up to you. † Best Buy started taking the initiative to increase sales. Learning the wrong lesson After closing all of its China stores, Best Buy top executives said the lesson learned in the Chinese market is â€Å"price, price and price! † In the opinion of Best Buy top exec utives, Chinese consumers’ sensitivity to the price is so overwhelming that Best Buy’s â€Å"customer-centric† values were meaningless. However, Best Buy’s customer-centric philosophy and various design details were adapted by Gome and Suning, making Best Buy’s conclusion questionable. The Five Star top executive interviewed by this magazine said the Best Buy model uses its own staff, unlike stores using a consignment model. He gave an example. A 5,000-square meter store needs 260 staff, and in consignment stores, generally 200 come from the manufacturers. But Best Buy will not open a store until recruiting all 260 staff. Because of the emphasis on service, the training period for retail staff is longer, with a six-month to one-year training period for management. A shortage of talent was an important reason for Best Buy’s slow rate of opening stores. Home appliance expert Luo Qingqi believes Best Buy’s problem is not that is acted like a traditional retailer (as opposed to selling on consignment like Gome and Suning) but the product line. Products sold at Best Buy stores were mainly foreign. Chinese brands such as Midea, which offers many popular product lines, did not appear on Best Buy’s shelves. Even the foreign brand Whirlpool cooperated more with Suning and Gome. â€Å"We are operating within the Chinese market and will notice which stores consumers like to visit, and use them as our main distribution channels,† said a Whirlpool employee. Ding Jie, a global partner of the Roland Berger consulting firm, believes Best Buys’ high operating costs were not its main problem, but rather that Best Buy cut itself off from the supply chain by refusing to adapt the consignment model. Ding Jie said most staff members at China’s consignment-based home appliance stores are employees of the manufacturers. â€Å"In China, consumers do not have strong core brand awareness, and the difference among home appliances is not big. Manufacturers focus on distribution channels that allow them to collect market information and determine market trends. Manufacturers and distributors cater to the needs of consumers with the collaboration of the entire industrial chain. † The Best Buy model serves consumers by being independent. But because there is no personalization and differentiation of products, it is bound to fail. According to Ding Jie, the main advantage of foreign retailers is their management model. But if they want to succeed in China, foreign retailers should let their local staff operate more freely and give them the power to adjust the business model. Many foreign retailers that failed in China might have succeeded if they empowered local staff. How to cite Best Buy in China, Essay examples

The Net Capital Losses or Gains Analysis

Question: Explain the net capital losses or gains for the current tax year of Dave. Answer: In this particular case, the objective is to determine the net capital losses or gains for the current tax year of Dave as per the given transactions. Dave Solomon has sold some of his assets in order to prepare for his retirement. These selling operations of the given assets would result reasonable tax implications in terms of capital losses or gains. A brief discussion on the selling of the assets are as follows. Selling of the residence place (St. Lucia) As per the given information, it can be concluded that to achieve the reasonable amount of superannuation fund, Dave has sold his residential house which was situated in St. Lucia and he resided in that house from last 30 year. As per this information it would be said that Dave must have purchased this two story residency house in the year 1986. Since, the house has been purchased after 20 September 1985, therefore, any capital gains realised by selling this residential place would be considered for CGT (Capital Gains Tax) as per ITAA, 1997 (Sadiq et. al., 2015) . Despite the residence not being exempted from the aegis of CGT, the main residence exemption may allow for capital gains concession in line with Division 118 ITAA, 1997. However, this would require the current residence to fulfil the following two conditions as are mentioned below (Barkoczy, 2015). The taxpayer must necessarily have stayed in the house ever since it has been purchased for the house to be classified as the main or permanent residence. Also, the commercial usage of the residence would not be there for deriving any sort of income. From the case information provided, it may be deciphered that in the given case, the satisfaction of both conditions takes place and thereby the given house can be classified as the main or permanent residence for Dave in the absence of any other residence. Hence, no CGT would be paid by Dave Solomon on any gains that are made on the sale of the residence (Gilders et. al., 2015). Capital gains computation of painting It is known from the question that the painting has been acquired in the post CGT era that commences on September 20, 1985 and therefore capital gains tax is applicable on any capital gains which may be derived by liquidation Paintings acquisition cost for Dave = $ 15,000 Sales price obtained on selling of the painting = $ 125,000 Gains of capital nature derived from painting sale = 125000 15000 = $ 110,000 Since the painting was held for more than a year, hence the capital gains derived from the same are of long term nature (Sadiq et. al., 2015). Capital gains computation of luxury boat It is known from the question that the luxury boat has been acquired in the post CGT era and therefore capital gains tax is applicable on any capital gains which may be derived. Purchase price of boat = $ 110,000 Liquidation price of boat = $ 60,000 Resultant capital losses = 110000-60000 = $ 50,000 Since the boat was held for more than a year, hence the capital losses are of long term nature (Sadiq et. al., 2015). Capital gains computation of shares It is known from the question that the shares have been acquired in the post CGT era and therefore capital gains tax is applicable on any capital gains which may be derived. Share acquisition price in January 2016 = $ 75,000 Selling price of the shares = $ 80,000 However, as per the question, there are certain costs that are incidental to the normal transaction and therefore as per Section 110-25 would contribute to the cost base of the asset. As per the information provided, the incidental costs are brokerage charges and also the stamp duty. Besides, the asset financing cost is also added to the overall cost base as per Section 110-25. In the given case, since ATO has denied providing any deduction to Dave Solomon, hence the interest costs would also add on to the overall share cost base (Barkoczy, 2015). Therefore, cost base for shares = 5000 + 250 + 75000 + 750 = $ 81,000 Sale proceed on share liquidation = $ 80,000 Capital losses on account of share sale = 81000 80000 = $ 1,000 Hence, the total gains of capital nature that Dave can derive based on the given transactions = 110000 50000 -1000 = $ 59,000 The case information also states that in the previous year, Solomon has made a loss of capital nature to the tune of $ 10,000 for the shares that Dave had sold. These losses would be brought forward in the current year and adjusted against the capital gains for the current year (Gilders et. al., 2015). Post adjustment net capital gains = 59000 -10000 = $ 49,000 The capital gains that are derived by Solomon are long term in nature and considering the individual taxpayer status of Solomon, a discount of 50% with regards to capital gains is available. Therefore, capital gains on which CGT would be levied = 49000*0.5 = 24,500 It is evident from the above computation that Dave makes a capital gain and thereby would have to pay CGT which is applied at a flat rate of 30% and is independent of the underlying value. Thus, liability related to CGT = 24500*0.3 =$ 7,350 The question now presents a situation where Solomon would make loss for FY2016 also and in this case the previous year losses would be accumulated and the cumulative loss would be transferred to the future years for balancing against the potential future capital gains, Ir is noteworthy that the accumulated losses would be rolled on till perpetuity until these are neutralised with adjustment against capital gains (Deutsch et. al., 2015). The given facts of the case reflect the fact that the employer Periwinkle has extended certain fringe benefits to the employee Emma which may have FBT (Fringe Benefit Tax) implications. The aim of the question is to opine on the tax implications arising from the above benefits in line with the provisions mentioned in the Fringe Benefit Tax Assessment Act 1986 (FBTAA86). The discussion of the tax implications of the host of fringe benefits extended in this case is carried out below. Fringe benefit linked to personal car usage The car fringe benefit is deemed to be derived under the circumstance when the employee uses the company owned car for satisfying his/her personal usage. This is in line with the description extended in Section 8 of the FBTAA86. The usage of the car and the underlying distance in kilometres leads to the determination of the fringe benefit and the associated tax liability. Additionally, as per Section 23L of the ITAA 1936, due to the car fringe benefit the tax implications will be levied on the employer (Sadiq et. al., 2014). As per the case details, Emma has been given car fringe benefit since the employer owned car was given by the employer for personal usage. For the computation of taxable value on a grossed up level, it is imperative to ascertain whether GST is paid or not (McCouat, 2012). In the event that GST is paid on the car, the relevant factor deployed for grossing up is 2.1463(ATO, 2015). The calculation of the resultant FBT liability is shown below (Wilmot, 2012). Step 1: Taxable Value Determination The formula for determination of the FBT taxable value is shown below. The various components which act as input need to be determined as is visible below. The applicable statutory percentage in the given case would be 20% as per the guidance from the ATO rule which states that the car must be utilised for a distance which is less than 15,000 km as the corresponding figure is 10,000 km (ATO, 2015). Total period for personal car usage by the employee i.e. Emma = 365-30-5 = 330 In the given case, 30 days have been deducted since the car was provided to Emma not at the beginning of the financial year but when a month had already been elapsed. Besides, further five days are adjusted for the repair period but no adjustment for ten days has been made for the parking as the ownership of the car was with Emma. Value of the fringe benefit due to car = 32450 0.2 (330/365) = $ 5,867.7 Step 2: Liability associated with FBT Fringe benefit tax on the value of the fringe benefit due to car = 5,867.7 2.1463 0.49 = $ 6,170.95 Loan linked fringe benefit The loan fringe benefit is the result of the extension of loan to employee by the employer at a rate of interest which is lower as compared to the prescribed rate of RBA and hence provides benefit to employee. Like the other fringe benefits, the liability arising on behalf of the loan fringe benefit has to be borne by the employer. The current RBA rate is spelled out in the TD 2015/8 and is equal to 5.65% pa (Barkoczy, 2015). The interest rate applicable on the loan given to Emma is 4.45% pa and hence the employee is being benefited due to lower interest rate. The actual amount of loan fringe benefit is the amount of saving of employee on the cumulative interest cost supposing that it was lent at the rate prescribed by RBA (Gilders et. al., 2015). Finance cost when loan is extended at RBA prescribed cost = 500,000 0.0565 = $ 28.250 Finance cost when loan is extended at employer prescribed cost = 500,000*0.0445 = $ 22,250 The total cumulative savings on interest = $ 28,250 - $ 22,250 = $6,000 Hence, FBT at the rate of 49% would be levied on the loan related fringe benefit of $ 6,000. Since 90% of the extended loan of $ 500,000 is deployed for holiday home purchase for deriving personal gains, hence the employer would get rebate on the interest paid on this loan which would lead to the FBT liability lowering (Sadiq et. al., 2015). Fringe benefit related to bathtub By extension of bathtub to employee Emma at a rate lower than that charged by the retail customer, Periwinkle has indeed extended a fringe benefit whose value is equal to the costing differential between the normal retail customers and Emma. Thus, on this differential amount FBT should be levied at the rate of 49% (Deutsch et. al., 2015). The information provided in the question states that there is a change in fund deployed as $ 50,000 which was earlier used by Emma would now be used by her husband who would use them for indulging in share investment. The tax rebate on account of the interest on the component of the loan used for purchase of the holiday home would still be continued. However, otherwise there would be a decrease in the FBT linked liability as is computed below (Sadiq, et. al.,2015). Finance cost when 10% loan is extended at RBA prescribed cost = 50,000*0.0565 = $ 2,825 Finance cost when loan is extended at employer prescribed cost = 50,000 0.0445= $ 2,225 Therefore, decrease in the fringe benefit taxable value = 2825-2225 = $ 600 Total decrease in FBT related liability = 600*0.49 = $ 294 References ATO 2015, How to calculate your FBT, Australian Taxation Office. Barkoczy,S 2015.Foundation of Taxation Law 2015,7th edn, CCH Publications, North Ryde Deutsch, R, Freizer, M, Fullerton, I, Hanley, P, Snape, T 2015. Australian tax handbook, 8th edn, Thomson Reuters, Pymont Gilders, F, Taylor, J, Walpole, M, Burton, M. Ciro, T 2015. Understanding taxation law 2015, 8th edn, LexisNexis/Butterworths. McCouat, P 2012, Australian GST legislation. 17th edn, CCH Australia Limited, North Ryde Sadiq, K, Coleman, C, Hanegbi, R, Jogarajan, S, Krever, R, Obst, W, and Ting, A 2015,Principles of Taxation Law 2015,8th edn, Thomson Reuters, Pymont Wilmot, C 2012, FBT Compliance guide, 6th edn, CCH Australia Limited, North Ryde.