As part of its employee benefits plan, Omega Corporation acquired apiece of residential lot worth P2M for its Chief Executive Officer andconstructed upon it a house at a cost P4M. Ownership of the house andlot was turned over to the CEO upon completion of the construction. 40%of the value of the house and lot will be deducted from the director’ssalary over a period of 5 years. Compute the fringe benefit tax

As part of its employee benefits plan, Omega Corporation acquired apiece of residential lot worth P2M for its Chief Executive Officer andconstructed upon it a house at a cost P4M. Ownership of the house andlot was turned over to the CEO upon completion of the construction. 40%of the value of the house and lot will be deducted from the director’ssalary over a period of 5 years. Compute the fringe benefit tax

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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Accounting As part of its employee benefits plan, Omega Corporation acquired a piece of residential lot worth P2M for its Chief Executive Officer and constructed upon it a house at a cost P4M. Ownership of the house and lot was turned over to the CEO upon completion of the construction. 40% of the value of the house and lot will be deducted from the director's salary over a period of 5 years. Compute the fringe benefit tax. А. 3,230,769 B. 1,938,462 С. 1,292,307 D. 161,538
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A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is a P131 b P196 c P98 d P89
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À lump sum benefit is payable on termination of service and equal to 1% of final salary for each year of service. The salary in Year 1 is P10,000 and is assumed to increase at 7% (compound) each year. The discount rate used is 104 per year. The entity does not fund its obligation to pay lump sum benefits. The employee is expected to leave at the end of Year 5. The defined benefit liability (deficit) at the end of the second year is
ABC put up a qualified retirement plan approved by the BIR. It appointed B Corp. to administer the plan, which called for the payment of P200,000 to cover the retirement of employees for past services rendered and a yearly contribution of P50,000. The following amounts were paid for the first three years of the plan's operation: Contribution for Services Past Years P 100,000 60,000 40,000 Current Years First year. Second year. Third year.. P 50,000 50,000 50,000 1. The pension expense for the first year is a. P 150,000 b. Р 15,000 с. Р 60,000 d. P 105,000 2. The pension expense for the second year is a. P110,000 b. P 11,000 с. Р 56,000 d. P 66,000 3. The pension expense for the third year is а. Р 90,000 b. Р 9,000 с. Р 54,000 d. P 70,000
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Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31, 2022?
Joshua Company has a define contribution plan that covers its existing employees. The terms of the plan require Joshua to contribute 5% of the annual employee salaries to the retirement plan each year. The payroll shows the annual salaries and contributions made as follows: Year Gross Payroll Contributions made 2021 P10,000,000 P670,000 2022 12,200,000 430,000 How much is the benefit expense in 2022 profit or loss and the amount of prepaid (accrued) banefit as of December 31.2022? O P430.000 and P180,000 accrued O P610,000 and P180,000 accrued O P430,000 and P10,000 prepaid O P610.000 and P10.000 prepaid