During 2019, Alpha Corporation gave the following fringe benefits to its employees:Salaries to rank and file employeesSalaries to managerial employees1,000,0001,800,000De minimis benefits to rank and file54,400employeesDe minimis benefits to managerialemployeesFringe benefits to rank and fileemployeesFringe benefits to managerialemployees27,200102,000170,000How much is the total allowable deduction from business income of Alpha Corporation?

Deductions from total business income are the credits and allowances that are being allowed from…

Answered: During 2019, Alpha Corporation gave the…

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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wifty Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. (a)…
Shamrock Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (market-related value) $565,000 Projected benefit obligation 656,000 Pension asset/liability 91,000 Cr. Prior service cost 86,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020. Service cost $98,000 Settlement rate, 9%; expected return rate, 10% Actual return on plan assets 50,000 Amortization of prior service cost 26,000 Contributions 126,000 Benefits paid retirees 92,000 Average remaining service life of active employees 10 years Using the preceding data, compute pension expense for Shamrock Corp. for the year 2020 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.) Use the market-related…
The following information appeared in the 2020 BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) of Angelou, a purely compensation income earner: Gross compensation income - Php 400,000.00 13th month pay and other benefits 40,000.00 Amount of taxes withheld (by the employer) 30,000.00 Commission 50,000.00 Pagibig contributions 10,000.00 Philhealth contributions 10,000.00 SSS 10,000.00 Union dues…
Justin received all of the following compensation for the year 2021: Basic Salary Php 258,000 Mandatory deductions 21,600 Withholding Taxes 14,000 Position Allowance 36,000 Overtime Pay 27,000 De minimis benefits 22,000 13th month pay 10,000 Total non-taxable benefits Php 70,600 How much is the Taxable compensation tax: a. 258,000 b. 388,600 c. 318,000 d. None of the Choices e. 328,000
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)
The following information for Blossom Enterprises is given below: December 31, 2021 Assets and obligations Plan assets (at fair value) $840000 Accumulated benefit obligation 1360000 Projected benefit obligation 1450000 Other Items Pension asset / liability, January 1, 2021 40000 Contributions 460000 Accumulated other comprehensive loss 753700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years.What is the amount that Blossom Enterprises should report as its pension liability on its balance sheet as of December 31, 2021? $1360000 $90000 $1450000 $610000
3: Burger Bites Restaurant employs 51 workers who, for the current pay period, earn total taxable pay of $87,450. Of this amount, only $11,000 are subject to SUTA tax, as this is the portion of individual employee earnings that does not exceed the $8,500 threshold. Calculate SUTA tax based on these earnings. SUTA tax
What amount should Webb Company contribute in order to report an accrued liability for retirement benefit cost of P200,000 in its December 31, 2005 balance sheet? Webb Company implemented a defined benefit plan for its employees on January 1, 2002. During 2002 and 2003, Webb's contributions fully funded the plan. The following data are provided for 2004 and 2005: 2005 estimated 2004 actual Projected benefit obligation, 12/31 Accumulated benefit obligation, 12/31 Plan assets at fair value Projected benefit obligation in excess of plan assets Retirement benefit expense Employer's contribution P7,500,000 5,200,000 6,750,000 P7,000,000 5,000,000 6,000,000 750,000 900,000 ? 1,000,000 800,000 500,000 (a) P1,000,000 (b) P700,000 (c) P600,000 O (d) P500,000
The following data pertains to Integrity Company that adopts a defined benefit plan for its employees: ⚫ Defined benefit obligation, January 1, 2021 - P4,800,000 • Plan assets at fair value, January 1, 2021 - P6,250,000 For the year 2021: ⚫ Current service cost - P560,000 • Contributions made to the fund - P750,000 • Benefits paid to employees - P1,350,000 • Discount rate - 10% • Defined benefit obligation after remeasurement on December 31, 2021 P4,550,000 • Actuarial loss on plan assets - P31,000 How much is the Defined Benefit Liability/Asset at December 31, 2021? Choices: 1,206,000 Liability 1,206,000 Assets 1,694,000 Liability 1,694,000 Asset Show your computation
Eq Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June 2021. Fair value of plan assets (1 July 2020) $94 356 000 Fair value of plan assets (30 June 2021) $95 832 000 Present value of defined benefit obligation (1 July 2020) $98 586 000 Present value of defined benefit obligation (30 June 2021) $103 392 000 Benefits paid $15 552 000 Contributions received $8 640 000 Current service cost $12 096 000 Rate of return on plan assets for the period…
On September 1, 2020 , Reality Corporation offered special termination benefits to employees who had reached the early retirement age specified in the company's pension plan . The termination benefits consisted of lump sum and periodic future payments . Additionally , the employees accepting the company offer receive the usual early retirement pension benefits . The offer expired on November 30, 2020. Actual or reasonably estimated amounts on December 31, 2020 relating to the employees accepting the offer are as follows : Lump sum payments made 475,000 on January 1, 2021 Present value of periodic payments 155,000 of P60,000 annually for 3 years which will begin January 1, 2021 Reduction of accrued pension cost on 45,000 December 31, 2020 for the terminating employees What amount should Possible Corporation report as total liability for termination benefits on December 31, 2020 ?
Integrity Company was organized way back in 2000. It was in 2016 that the company adopted a defined benefit plan for its employees. After five years of profitable operations, an amendment in its defined benefit plan was effected on January 1, 2021 resulting to increased employee benefits. The records of the company show the following balances on January 1, 2021: Defined benefit obligation - P7,600,000 Plan assets at fair value - P6,200,000 For the year 2021, after considering the actuarial assumptions about demographic variables and financial variables, the following were reported: Current service cost - P560,000 Contributions made to the fund - P1,750,000 Past service cost resulting from the plan amendment - P920,000 Benefits paid - P1,350,000 Discount rate - P8% Actual return on plan assets - P602,000 Actuarial loss on remeasurement of defined benefit obligation at year end - P102,000 How much is the retirement benefit expense taken to profit or loss for the year ended December…

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