In the taxable year 2020, the following data pertain to a corporate business organization: De minimis benefits to all employees 90,000 180,000 Local traveling expenses paid by company for the travel of his supervisory employees and the members of their families A Mitsubishi car benefit for the personal and company use of the company's sales manager. Said car was purchased under the following terms: cost price P500,000, 20 % down payment on installment basis payable for 43 months with 12 % interest per annum based on the outstanding balance Membership fees and dues in social and athletic clubs paid by the company for the benefit of the managerial employees 100,000 70,000 What is the total fringe benefit tax? a. P184,879 b. P278,479 c. P188,462 d. P134,615
In the taxable year 2020, the following data pertain to a corporate business organization: De minimis benefits to all employees 90,000 180,000 Local traveling expenses paid by company for the travel of his supervisory employees and the members of their families A Mitsubishi car benefit for the personal and company use of the company's sales manager. Said car was purchased under the following terms: cost price P500,000, 20 % down payment on installment basis payable for 43 months with 12 % interest per annum based on the outstanding balance Membership fees and dues in social and athletic clubs paid by the company for the benefit of the managerial employees 100,000 70,000 What is the total fringe benefit tax? a. P184,879 b. P278,479 c. P188,462 d. P134,615
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:In the taxable year 2020, the following data pertain to a corporate business organization:
De minimis benefits to all employees
90,000
180,000
Local traveling expenses paid by company for the travel of his supervisory
employees and the members of their families
A Mitsubishi car benefit for the personal and company use of the company's
sales manager. Said car was purchased under the following terms: cost price
P500,000, 20 % down payment on installment basis payable for 43 months
with 12 % interest per annum based on the outstanding balance
Membership fees and dues in social and athletic clubs paid by the company
for the benefit of the managerial employees
100,000
70,000
What is the total fringe benefit tax?
d. PI84,879
b. P278,479
c. PI88,462
d. P134,615
The correct answer is:
P188,462
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