In the taxable year 2020, the following data pertain to a corporate business organization:• 90,000• 180,000De minimis benefits to all employeesLocal traveling expenses paid by company for the travel of his supervisoryemployees and the members of their families• 100,000A Mitsubishi car benefit for the personal and company use of the company'ssales manager. Said car was purchased under the following terms: cost priceP500,000, 20 % down payment on installment basis payable for 43 monthswith 12 % interest per annum based on the outstanding balance• 70,000Membership fees and dues in social and athletic clubs paid by the companyfor the benefit of the managerial employeesWhat is the total allowed fringe benefit deduction

Fringe benefits are the additional benefits and compensation, that is being provided to employee by…

Answered: In the taxable year 2020, the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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Export-Import Corporation paid the amount of P13,000.00 to Hernando’s Hideaway Resort Corporation for the vacation expenses of Mr. Leandro Lopez, its warehouse manager, in April 2020. The journal entry to record the fringe benefit expense and fringe benefit tax expense is: a. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash, P13,000.00; Fringe benefit tax payable, P7,000.00. b. Debits: Fringe benefit expense, P20,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash, P20,000.00; Fringe benefit tax payable, P7,000.00. c. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Fringe benefit expense payable, P13,000.00; Fringe benefit tax payable, P7,000.00. d. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credit: Cash, P20,000.00.
In 2021 XY corporation is subject to MCIT has the following records Sales: net of discounts and allowances php 9,500,000 cost of sales php 5,000,000 gain on sale of building php 150,000 allowable deductions php 4,420,000 Compute the income tax payable of XYZ Corporation P46,000 P46,500 P76,000 P95,000
In March 1, 2019, Tina Corporation reported the following business income and expenses: Sales P1,000,000, Cost of sales P600,000, Operating expenses P200,000; Gain from sale of old furniture P20,000. If 20% of operating expenses of Tina is prepaid expenses, how much is the taxable income?
During the 2023 FBT year, Bulkhead Shipping (Bulkhead) provided the following fringe benefits to Christina, the CEO: Child-care expense payment benefit $10,000 taxable value Domestic holiday expense payment benefit $10,000 taxable value All figures are GST inclusive where applicable. Calculate the 2023 FBT liability of Bulkhead on these benefits. Question 15Select one: $18, 644.90 $ 9,400.00 $19, 553.88 $17, 735.92 (answer required according to Australian Taxation)
Z Corporation paid P 136, 000 cash fringe benefit for the year 2019 representing 80 % of the car incentive for its area manager. Z remitted the related final tax of the said cash fringe benefit. The amount to be claimed as business deduction form business income is: * a. P 170, 000 b. P 200, 000 c. P 136, 000 d. P 108, 800 e. Answer not given
FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000
Bluedragon is engaged in the following business activities for the year 2021: buying and selling of computer of computer parts with gross sales of P1,500,000 and as a freelance graphic artist with gross receipts of P1,000,000. Determine the business tax and the business tax due. * O Percentage tax 1%; P 25,000 O Percentage tax 3%; P 75,000 O VAT 12%; P 300,000 O VAT Exempt; P 0
In 2020, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? O a. $500,000 Ob. $750,000 O c. $1,500,000 O d. $0 O e. $250,000
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.

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