Answered: HUM., Co. gave fringe benefits to…

HUM., Co. gave fringe benefits to employees as follows: To its Clerks and Janitors P 100,000 To its Area Managers 650,000. How much is the fringe benefit tax?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter9: Payroll, Estimated Payments, And Retirement Plans

Section: Chapter Questions

Problem 16MCQ

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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HUM., Co. gave fringe benefits to employees as follows:
To its Clerks and Janitors P 100,000
To its Area Managers 650,000. How much is the fringe benefit tax?

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