Determine whether the following benefits are fringe benefits or exempt fringe benefits and, where applicable, state...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Determine whether the following benefits are fringe benefits or exempt fringe benefits and, where applicable, state the relevant category of fringe benefit. Provide reasons for your answers and calculate the exact fringe benefit amount(s), where appropriate, for the following cases listed below (a) - (g): (a) A monthly payment of $120 is made to Jack. Jack is an employee, who sometimes uses his home phone for work purposes. Jack has estimated that the business use percentage of his phone bill is 20%. (1 mark) A payment of $1,000 employee's superannuation contribution by the employer to a complying superannuation fund. (1 mark) (b) A loan of $20,000 from the company to one of its shareholders with no interest being (c) charged. The company's rules do not permit loans to employees, but it is silent about loans to shareholders. (1 mark) (d) A payment of a $50 Uber fare by the employer for the employee to travel home after working late. (1 mark) (e) A bunch of flowers sent to a sick employee. The flowers cost $120. (1 mark) Provision of a car for an employee's private use, including payment of all fuel costs by the employer. Consider whether any fringe benefits have arisen. (1 mark) Provision of sandwiches at a lunchtime seminar held at the employer's premises. (1 mark) (f) (g) (7 marks. Word limit. Minimum of 120 words. Maximum of 150 words) Determine whether the following benefits are fringe benefits or exempt fringe benefits and, where applicable, state the relevant category of fringe benefit. Provide reasons for your answers and calculate the exact fringe benefit amount(s), where appropriate, for the following cases listed below (a) - (g): (a) A monthly payment of $120 is made to Jack. Jack is an employee, who sometimes uses his home phone for work purposes. Jack has estimated that the business use percentage of his phone bill is 20%. (1 mark) A payment of $1,000 employee's superannuation contribution by the employer to a complying superannuation fund. (1 mark) (b) A loan of $20,000 from the company to one of its shareholders with no interest being (c) charged. The company's rules do not permit loans to employees, but it is silent about loans to shareholders. (1 mark) (d) A payment of a $50 Uber fare by the employer for the employee to travel home after working late. (1 mark) (e) A bunch of flowers sent to a sick employee. The flowers cost $120. (1 mark) Provision of a car for an employee's private use, including payment of all fuel costs by the employer. Consider whether any fringe benefits have arisen. (1 mark) Provision of sandwiches at a lunchtime seminar held at the employer's premises. (1 mark) (f) (g) (7 marks. Word limit. Minimum of 120 words. Maximum of 150 words)
Expert Answer:
Answer rating: 100% (QA)
a Monthly Payment to Employee will be taken as a Fringe Benefit for the proportion the em... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
Students also viewed these accounting questions
-
Determine whether the following bonds payable will be issued at maturity value, at a premium, or at a discount: a. The market interest rate is 5%. Carlisle Corp. issues bonds payable with a stated...
-
Determine whether the following bonds payable will be issued at par value, at a premium, or at a discount: a. The market interest rate is 7%. Horton Corp. issues bonds payable with a stated rate of 6...
-
Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale. A. Q = 0.5X + 2Y + 40Z B. Q = 3L + 10K + 500 C. Q = 4A + 6B + 8AB D. Q = 7L^2 + 5LK...
-
If a company is very diversified, (a) it makes it easier to classify the company by industry. (b) it would not be necessary to provide any segmented information. (c) it can limit the usefulness of...
-
Describe whether you think Comptronix's executive team was inherently dishonest from the beginning. How is it possible for otherwise honest people to become involved in frauds like the one at...
-
Which of the following is not a zakat beneficiary? I. The wayfarer II. The poor III. The needy IV. The soldiers V. The slaves a. IV and V b. IV only c. V only d. All are zakat beneficiaries.
-
The pulley groove angle for a V-belt is (a) equal to V-belt angle (b) less than V-belt angle (c) more than V-belt angle (d) any one of the above
-
Dawson OConnor is the owner of Miller Island Sales, a distributor of fishing supplies. The following is the balance sheet of the company as of December 31, 2015: Dawson keeps very few records and has...
-
What is the basic human psychology? What are the three basic human needs psychology? What are the three basic principles of psychology?
-
During the year, your clients Omar and Maria Mansour had the following investment transactions: Interest and dividend income reported to them: 1099-INT from Chase Bank Interest income (1099-INT from...
-
Pretend that you are working as a parent educator for first-time parents of infants. Your role is to help them understand developmental concepts and the stages that will impact their children from...
-
Describe the sector/ industry in which Pfizer operates ? How is this sector/industry organized? What is happening within this pharmaceutical Industry? What opportunities and threats exist that Pfizer...
-
Exercise 1 Given the functionf(x) = ln(x) for 1 x 2. a) Using the following table, estimate f(0.25) using Lagrange Interpolator, and least square estimation. b) Compute the error and compare the...
-
Assuming that you have $1 million to invest, how would you structure your investment? Why? I have provided two materials on the google drive links below that will assist with the answer....
-
In advising a client you are considering adding a mutual fund, FundsRUs, to the client's portfolio of investments. The fund has a beta coefficient of 1.35 and currently the return on an average risk...
-
Let us assume, your group has 5 croe Taka to invest. You have decided to invest this money in financial assets of Bangladesh. Considering all possible scenario what will be your investment portfolio....
-
Debtor, whose income is below the median in her state, is driving a two-year-old Lexus RX 350, which is a small luxury sport utility vehicle. Debtor does not drive the vehicle off the road, but feels...
-
Consider the activities undertaken by a medical clinic in your area. Required 1. Do you consider a job order cost accounting system appropriate for the clinic? 2. Identify as many factors as possible...
-
The tax treatment of fringe benefits for more-than-2% shareholder-employees of S corporations is less favorable than that for nonowners or employees of some other entities. What fringe benefits are...
-
A local bank has asked you to speak at its Building Personal Wealth Conference on the topic of What Should Your Trust Do for You? Develop at least four PowerPoint slides, each one listing a function...
-
Apricot Corporation distributes property ($125,000 basis and $150,000 fair market value) to its sole shareholder, Ellie. The property is subject to a liability of $200,000, which Ellie assumes....
-
What criteria do you use to filter the list of BOs?
-
Use the existing pattern in this chapter to model a student email account. a. Draw a class diagram of using Any Account pattern. b. Generate a significant use case for this context. c. Map the use...
-
How do you apply a stable analysis pattern to a particular context?
Study smarter with the SolutionInn App