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

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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
Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting taxes but before bonuses) as a bonus arrangement with the company. For the current year, the net income after deducting the provision for income taxes and bonus is P5,000,000 The bonus is not deductible for tax purposes, and the tax rate is 20% Compute the appropriate provision for income tax for the year.
A private employee retired at 60 in the middle of the year and was paid the following remunerations: Retirement benefits Terminal leave pay/benefit (150 accumulated leaves of which 10 VL is de minimis) 2,000,000 120,000 Compensation (net of 16,000 mandatory contributions) 128,000 Profit sharing 8,000 Prorated 13th month pay 12,000 Compute the taxable compensation income.
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
A company's defined benefit pension plan incurs current service cost of $4,000,000. his pension plan's assets generated $2,500,000 of income, which exceeded expectations by $500,000. Pension obligations incurred interest cost of $1,500,000, which were $700,000 below expectations. During the year, the company increased benefits in the pension plan and incurred $800,000 for past service cost. What is the pension expense for the year? o A) $3,800,000 • B) $4,600,000 • C) $5,600,000 o D) $5,000,000 O 2. What are actuarial losses or gains in a defined benefit plan? • A) Difference arising between the actual and the expected value of plan contributions. o B) Expected income earned on the pension plan assets. o c) Differences arising between the actual and expected values of the obligation. o D) Plan amendments that retrospectively improve pension plan benefits.
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.
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ABC Corp. grants its employees 20 days' vacation leave for the whole year. Such vacation leave may be converted into cash before the end of the year. Inday, an accounting clerk of the company, who is earning a rate of P 600 per day, monetized her unused vacation leave of P 6,600 at the end of the year. The whole amount of P 6,600 monetized unused vacation is: S1: Part of Inday's taxable compensation. S2: Partly treated taxable compensation and partly exempt from income tax. a. Only S1 is true b. Only S2 is truc O c. Both are true O d. Both are false
For many years Switches Ltd provided a defined benefit superannuation plan for its employees, but owing to concerns about its exposure to risk it has been phasing out the defined benefit superannuation plan and replacing it with a defined contribution superannuation plan. Most employees belong to the defined contribution superannuation plan. Switches Ltd has paid contributions of $160,000 to the trustee of the defined contribution plan for the year ended 30 June 2023, but the contribution payable for services rendered by employees in the fund was $180,000 for the year. There are only four employees in the defined benefit plan at 30 June 2023 and they are due to retire on 30 June 2026. The employees’ entitlement increases with the length of their employment. At 30 June 2022 they were entitled to receive three times their annual salary on retirement. By 30 June 2023 they were entitled to receive 3.2 times their annual salary on retirement. The aggregate salaries of the four members of…
The trustee for the Bronson Corporation defined benefit pension plan sent a report to the CEO with the following information for the fiscal year: Beginning balance of plan assets at fair value $ 1,560,000 Actual return on plan assets $ 210,000 Employer’s contribution $ 150,000 Distributions to retirees $ 75,000 Service cost $ 125,000 Interest cost $ 156,000 Loss from changes in benefits or assumptions $ 35,000 Beginning balance of the PBO $ 1,580,000 The ending balance of plan assets is: Multiple Choice $1,770,000. $1,845,000. $1,920,000. $1,955,000.
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)
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.

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