Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 1 during 2021, red horse company provided

Problem 1 During 2021, Red Horse Company provided cash fringe benefits to its employees in...

80.2K

Verified Solution

Question

Accounting

image

Problem 1 During 2021, Red Horse Company provided cash fringe benefits to its employees in the total amount of P3,200,000. The following additional data are provided: 1.80% of the total amount given was provided to managers and supervisors as follows: a. 50% classified as resident citizen b. 30% classified as special alien c. 20% classified as non-resident alien not engaged in business in the Philippines 2 20% of the total amount was given to rank-and-file employees Required: Compute the following: 1. The grossed-up monetary value of the fringe benefit 2. The total fringe benefits tax Problem II Peter Pan, a self-employed individual, had provided the following fringe benefits during the 2020 taxable year: a. Housing units provided to the Plant Supervisor necessary to the business operation of the employer: Fair market value 900,000 Zonal value 1,000,000 b. Cash payment for the purchase of grocery items 382,500 c. Car benefits in the name of the finance officer acquired on installment basis: Cash price 750,000 Installment price Down payment 400,000 Annual installment for four years at the amount of 400,000 Required: Compute the following 1. the total fringe benefits expense 2. the fringe benefit tax

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

17. The following results belong to a patient who visited his cardiologist: Systolic Blood Pressure: 127 Diastolic Blood...

Finance
1.2K views

JB Hi-Fi management is considering the two following options of buying a new equipment for a...

General Management
1.2K views

you will create one job for your make up organization; one is entry level position from...

Biology
1.2K views

The following equation describes C6H12O6 602 6CO2 6H2O energy ATP heat photosynthesis fermentation glycolysis cellular...

Geometry
1.2K views

Find the value of sin 15 cos 75 1 O 1 O 0

Statistics
1.2K views

An automobile tire manufacturer collected the data in the table relating tire pressure x in...

Algebra
1.2K views

Find the common ratio for the following geometric sequence 5 20 80 320 The common...

Accounting
1.2K views

e variable cost rate of qual capitation payment of cates that the population $100,UUU! 5.9...

Accounting
1.2K views

A local government has four federal grants. Expenditures during the year ended June 30, 2020,...

Accounting
1.2K views

The average collection period is defined as... the average amount of time to pay vendors...

Finance
1.2K views

0.7. An unbalanced 2-Way ANOVA is fit using a dummy variable regression model relating behavioral...

Finance
1.2K views

Jones, Inc. issued $800,000 in bonds with a stated rate of 6% on January 1....