AccountingAs part of its employee benefits plan, OmegaCorporation acquired a piece of residential lotworth P2M for its Chief Executive Officer andconstructed upon it a house at a cost P4M.Ownership of the house and lot was turned overto the CEO upon completion of the construction.40% of the value of the house and lot will bededucted from the director's salary over aperiod of 5 years. Compute the fringe benefittax.А. 3,230,769B. 1,938,462С. 1,292,307D. 161,538

Monetary value of fringe benefit = 60% x (P2000000 + P4000000) = P3600000 Since fringe benefit tax…

Answered: Accounting As part of its employee…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Smithkline established an incentive program for its president. This plan compensates the president with an annual bonus of 20% on the operating income of the corporation net of contributions and after deducting the bonus itself. If the tax rate is 30% and the operating income for this year was $ 800,000, the president's bonus will be: a) $ 120,000 b) $ 100,000 c) $ 63,156 d) $ 98,246
White Lemon Cameras has the following employees: Annual Taxable Wages $ 22,200 $ 34,800 $ 44,400 $ 37,000 $ 53,600 Employee Name M. Haskell V. Papadopoulos P. Anderson C. Billingmeier C. Johnson Required: White Lemon Cameras's SUTA tax rate is 5.4 percent and applies to the first $11,600 of employee wages. White Lemon Cameras's FUTA tax rate of 6% is subject to a 5.4% reduction and applies to the first $7,000 of employee wages. What is the annual amount of FUTA and SUTA taxes due for each employee? Note: Round your answers for "SUTA Due" to 2 decimal places. Employee M. Haskell V. Papadopoulos P. Anderson C. Billingmeier C. Johnson FUTA Due SUTA Due
K Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company. 8% of salaries expense). i (Click the icon to view payroll tax rate information.) Read the requirements. More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Date Print Done Requirement 1. Journalize…
A Manager of MUUG Corporation received the following remunerations: Gross salaries, net of SSS, PHIC and HDMF sss maternity benefits P1,140,000 P20,000 Profit sharing bonus 13th month pay P155,000 P100,000 Compute the taxable compensation income.
Strand Inc. provides an incentives compensation plan under which its president receives a bonus equal to 10% of the corporation's income in excess of P 600,000 before income tax but after deduction of the bonus. Income before tax and bonus is P 1,920,000 and the tax rate is 32%, the amount of the bonus would be * A132,000 B.192,000 C.174,360 D.120,000
A contractor with an effective tax rate of 35% has the following for a tax year: gross income of $155,000, other income of $4000, expenses of $45,000, and other deductions and exemptions of $12,000. The income tax due is closest to:a. $35,700b. $42,700c. $51,750d. $55,750
3
02.
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses 760 800 Pretax accounting income (income statement) $ 128 $ 180 Taxable income (tax return) $ 116 $ 200 Tax rate: 25% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…
Marvel Corporation (a C-corporation) has the following operating profit for 2019 through 2021. Year 2019 2020 2021 Operating profit ($60,000) $30,000 $50,000 Assume the marginal tax rate is flat 21%. (1) Discuss the tax consequences in year 2019, 2020, and 2021, respectively. (2) Why does the tax law allow business taxpayers to carry the net operating loss (NOL)?
Assume that the company is operating a Takaful plan for a one-year coverage period. The company receives contributions of $100,000 from 50 participants, each contributing $2,000. The company invests the contributions in Shariah-compliant assets and earns a profit of $10,000 on these investments. The company pays wakalah fees of $2,500 for managing the Takaful plan. During the coverage period, the company pays claims of $20,000 to participants who suffer losses covered by the Takaful plan. journal entries and the income statement.
Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10percent of the company's income after deductions for bonus and income taxes. Income before bonus and incometaxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)?a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax?a. 131,776 b. 140,708 c. 138,837 d. 140,187

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS