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AAFM CTEP Exam - Topic 1 Question 76 Discussion

The employer had purchased a car for Rs. 3,00,000 which was being used for official purposes. After 2 year 6 months of its use, the car is sold to R, the employee, for Rs. 1,20,000. The value of this perquisite shall be __________.
A) Rs. 72,000
B) Rs. 60,000
C) Nil
D) Rs. 1,23,000

AAFM CTEP Exam - Topic 1 Question 76 Discussion

Actual exam question for AAFM's CTEP exam
Question #: 76
Topic #: 1
[All CTEP Questions]

The employer had purchased a car for Rs. 3,00,000 which was being used for official purposes. After 2 year 6 months of its use, the car is sold to R, the employee, for Rs. 1,20,000. The value of this perquisite shall be __________.

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Suggested Answer: A

by Jestine at Apr 05, 2026, 12:26 AM

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Huey
19 days ago
B feels more realistic based on usage.
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Dylan
24 days ago
I just don't see how A fits the sale price.
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Carissa
29 days ago
Still, A reflects the original cost better.
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Huey
1 month ago
Exactly, B considers that well.
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Dylan
1 month ago
But the market value is lower, right?
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Carissa
1 month ago
The depreciation makes sense for A.
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Huey
2 months ago
I lean towards B) Rs. 60,000. Seems fair.
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Dylan
2 months ago
Why A? I feel it's too high.
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Carissa
2 months ago
I think the answer is A) Rs. 72,000.
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Mona
2 months ago
Agree with Delisa, Rs. 60,000 sounds right!
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Angelica
2 months ago
Definitely not Nil, there's a value here.
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Vilma
3 months ago
Wait, how is it Rs. 1,23,000? That seems off.
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Delisa
4 months ago
I think the perquisite value is Rs. 60,000.
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Cecily
4 months ago
The car was bought for Rs. 3,00,000.
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Talia
5 months ago
I’m confused about whether the perquisite is calculated on the original cost or the sale price. I need to double-check the rules on this.
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Aide
5 months ago
This question seems similar to one we did in class where we had to determine the taxable value of a benefit. I think the answer could be Rs. 60,000.
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Gracie
5 months ago
I remember something about calculating perquisites based on depreciation, but I can't recall the exact method we practiced.
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Kris
6 months ago
I think the perquisite value might be based on the difference between the purchase price and the sale price, but I'm not entirely sure how to calculate it.
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