X Corporation allows its sales manager to incur expenses subject to reimbursements, as follows: Electricity – 70% in the name of the company Water- 70% in the name of the company Grocery – personal Gasoline – company car Representation and transportation – business trip P20,000 2,000 10,000 12,000 4,000 What is the amount subject to fringe benefit tax? O 15,400 O 16,600 O 25,400 O 48,000 O None of the above

X Corporation allows its sales manager to incur expenses subject to reimbursements, as follows: Electricity – 70% in the name of the company Water- 70% in the name of the company Grocery – personal Gasoline – company car Representation and transportation – business trip P20,000 2,000 10,000 12,000 4,000 What is the amount subject to fringe benefit tax? O 15,400 O 16,600 O 25,400 O 48,000 O None of the above

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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es ! Required information [The following information applies to the questions displayed below.]. a) Tax BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. FUTA SUTA b) Tax a. b. C. FICA-Social Security FICA-Medicare FUTA SUTA c) Tax Gross Pay through August 31 $ 5,300 2,800 132,200 FICA-Social Security FICA-Medicare FICA-Social Security FICA-Medicare FUTA SUTA Gross Pay for September $ 2,600 2,900 8,800 September Earnings Subject to Tax 2,600.00 2,600.00 $ September Earnings Subject to Tax 2,900.00 2,900.00 September Earnings Subject to Tax 8,800.00 Tax Rate 6.20% 1.45%…
Deductible Commission Salesperson Expenses - Example 4 Barton Ho is a commission salesperson. During the current year, in addition to his salary of $92,500, he earns and receives $34,700 in commissions. His costs for advertising were $12,200 and, in addition, he spent $6,400 on client entertainment. Because of the extensive travel required by his work, his travel accommodation costs totaled $16,100. Mr. Ho paid $5,000 for a sports club membership where he regularly entertains clients. He is required to pay his own expenses and does not receive any allowance from his employer. What is Mr. Ho's maximum expense deduction for the current year? Show your calculations.
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If an employee takes a customer to lunch and discusses business, can the employee deduct the cost of a meal? Explain. C O A. Employees can no longer deduct any portion of the cost of meals and entertainment. O B. Employees can deduct 50% of the entire cost. O C. Employees can deduct 50% of their own meals and entertainment that are business related but none of the cost of the customer's meal. O D. Employees can deduct 50% of their own meals and entertainment that are business related as well as 100% of the cost of the customer's meal.
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Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10percent of the company's income after deductions for bonus and income taxes. Income before bonus and incometaxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)?a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax?a. 131,776 b. 140,708 c. 138,837 d. 140,187
2 O c. $5,000 od. $10,000 4. BigBroker, Inc., an employer with 200 employees, offers health insurance coverage to its employees and dependents and pays one-half of employee premiums. For what tax penalty would it be liable if two of its employees obtained insurance coverage through an exchange in 2022 and received a premium subsidy for the entire year if the applicable annual penalty amount is $4,120? (Search Chapter 1) O a. $0 O b. $4,120 O C. $8,240 O d. $40,600 4 5. What is the Social Security taxable earnings limit applicable to wages received in 2022? Search Chapter 11 e LA A+ F3 x F4 -0-- F5 → Search + F6 09 F7 F8 F9 99+ F10 F11 W 1 F12 < X Insert $ PrtSc Delete