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Accounting
Statement 1: The fringe benefit tax shall be treated as a final income tax on the employee which shall be withheld and paid by the employer on a calendar quarterly basis as provided under the Tax Code. Statement 2: The grossed-up monetary value of the fringe benefit represents the whole amount of income realized by the employee which includes the net amount of money or monetary value of property which has been received plus the amount of fringe benefit tax thereon otherwise due from the employee but paid by the employer for and in behalf of his employee.  both are true both are false only S1 is true only S2 is true.

Statement 1: The fringe benefit tax shall be treated as a final income tax on the employee which shall be withheld and paid by the employer on a calendar quarterly basis as provided under the Tax Code. Statement 2: The grossed-up monetary value of the fringe benefit represents the whole amount of income realized by the employee which includes the net amount of money or monetary value of property which has been received plus the amount of fringe benefit tax thereon otherwise due from the employee but paid by the employer for and in behalf of his employee.  both are true both are false only S1 is true only S2 is true.

FINANCIAL ACCOUNTING
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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Statement 1: The fringe benefit tax shall be treated as a final income tax on the employee which shall be withheld and paid by the employer on a calendar quarterly basis as provided under the Tax Code. Statement 2: The grossed-up monetary value of the fringe benefit represents the whole amount of income realized by the employee which includes the net amount of money or monetary value of property which has been received plus the amount of fringe benefit tax thereon otherwise due from the employee but paid by the employer for and in behalf of his employee. 

  1. both are true
  2. both are false
  3. only S1 is true
  4. only S2 is true.
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