Agrix Company grants its managerial employees the privilege to select acar of their choice with value not exceeding PIM a unit or be given PIMcash benefit to acquire their own cars. It also grants supervisoryemployees car benefits if they actually purchase their cars. The followingdata in relation to the benefits are provided:Car benefits given to a manager, net ofwithholding tax on compensationP900,000Value of cars purchased for 2 managers2,000,000Cash payments to various car suppliers forsupervisory employees1,600,000One manager who did not meet company requirements was allowed topurchase his own car for a price not exceeding PIM, 40% at the expenseof the employer. The manager maximized his benefit.Compute the total monetary value of fringe benefits.

Value of fringe benefit provided to manager who did not meet the requirements = 40% x P1000000

Answered: Agrix Company grants its managerial…

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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