Sofronio Suarez, production manager of Lumina Manufacturing Corporation, received, in addition to his salary, thirteenth month pay, and productivity bonus, the following payments from the company during the year: Cash price of a Toyota Accord car P 3,000,000 Proceeds of an 8% interest-bearing loan from the company 940,000 Rental of residential house where Mr. Suarez resides 360,000 Reimbursement for groceries which Mr. Suarez bought for his personal consumption 40,000 Rice subsidy at P2,000 per month 24,000 Your review of the company's records yielded the following information: • Forty percent (40%) of the cost of the car which was to be transferred in the name of Mr. Suarez upon purchase will be shouldered by Mr. Suarez by way of monthly salary deduction of P25,000 per month for a period of 4 years. .The loan, which was obtained by Mr. Suarez from the company at the start of the year, is payable in 9 months. How much is the fringe benefit tax on the payments received by mr. Suarez?
Sofronio Suarez, production manager of Lumina Manufacturing Corporation, received, in addition to his salary, thirteenth month pay, and productivity bonus, the following payments from the company during the year: Cash price of a Toyota Accord car P 3,000,000 Proceeds of an 8% interest-bearing loan from the company 940,000 Rental of residential house where Mr. Suarez resides 360,000 Reimbursement for groceries which Mr. Suarez bought for his personal consumption 40,000 Rice subsidy at P2,000 per month 24,000 Your review of the company's records yielded the following information: • Forty percent (40%) of the cost of the car which was to be transferred in the name of Mr. Suarez upon purchase will be shouldered by Mr. Suarez by way of monthly salary deduction of P25,000 per month for a period of 4 years. .The loan, which was obtained by Mr. Suarez from the company at the start of the year, is payable in 9 months. How much is the fringe benefit tax on the payments received by mr. Suarez?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sofronio Suarez, production manager of Lumina Manufacturing Corporation, received, in addition to his salary, thirteenth month pay, and productivity bonus, the following payments from the company during the year:
Cash price of a Toyota Accord car
P 3,000,000
Proceeds of an 8% interest-bearing loan from the company
940,000
Rental of residential house where Mr. Suarez resides
360,000
Reimbursement for groceries which Mr. Suarez bought for his personal consumption
40,000
Rice subsidy at P2,000 per month
24,000
Your review of the company's records yielded the following information:
• Forty percent (40%) of the cost of the car which was to be transferred in the name
of Mr. Suarez upon purchase will be shouldered by Mr. Suarez by way of monthly salary deduction of P25,000 per month for a period of 4 years. .The loan, which was obtained by Mr. Suarez from the company at the start of the year, is payable in 9 months.
How much is the fringe benefit tax on the payments received by mr. Suarez?
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