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
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
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 45P
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Transcribed Image Text: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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