Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder.For the following items, indicate what amount, if any, is included in Polly's gross income.If an amount is zero, enter "0". b. The company owns a parking garage that is used by customers, employees, and the generalpublic, but primarily by the employees. Only the general public is required to pay for parking. Thecharge to the general public for Polly's parking for the year would have been $3,600 (a $300monthly rate).420 X

Employer-provided fringe benefits are a common component of compensation packages offered to…

Answered: b. The company owns a parking garage…

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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Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder.

For the following items, indicate what amount, if any, is included in Polly's gross income.

If an amount is zero, enter "0".

b. The company owns a parking garage that is used by customers, employees, and the general
public, but primarily by the employees. Only the general public is required to pay for parking. The
charge to the general public for Polly's parking for the year would have been $3,600 (a $300
monthly rate).
420 X

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

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