Permission to Dance Company provides retirement benefits to employees through defined contribution plan. The plan provides Permission to Dance shall contribute annually 8% of gross payroll to a funding agency. In addition, the entity is also required to contribute 5% of annual sales exceeding P10,000,000. During 2021, gross payroll of the company was P6,000,000 and the total sales amounted to P35,000,000. Which of the following is part of the entries that would be recorded by Permission to Dance assuming that the company contributed P1,700,000?

Permission to Dance Company provides retirement benefits to employees through defined contribution plan. The plan provides Permission to Dance shall contribute annually 8% of gross payroll to a funding agency. In addition, the entity is also required to contribute 5% of annual sales exceeding P10,000,000. During 2021, gross payroll of the company was P6,000,000 and the total sales amounted to P35,000,000. Which of the following is part of the entries that would be recorded by Permission to Dance assuming that the company contributed P1,700,000?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 16CE

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