South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 5, Problem 38P
To determine
Write a letter to the union members of U union explaining the tax consequences of the benefits provided to the members.
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Discuss the Fringe Benefits Tax (FBT) implications of the following cases (a) – (e):(Note - No calculations are needed. Only answer whether the employer is liable for FBT or not andwhy or why not)(a) An employer provides a Christmas lunch at a local restaurant, costing $1,000, for 10 of its keyemployees.
(b) A sporting club, which pays its honorary treasurer an honorarium of $5,000 per year, providinga car to him. The car is used 90% for club business. The treasurer has a full-time job at the localhospital. (
(c) An employer gives each of its 15 staff a leg ham each valued at $60 for Christmas. (d) An employer allows its staff to take home their laptop computers. It is estimated that only halfthe work done at home is business related. (e) A company director, not in receipt of any remuneration from the company, uses the company’stwo-tonne truck while undertaking renovations to his own home
1. Currently, Jan receives a salary of $48,000 and pays premiums of $2,000 toward the group insurance packages that the employer provides as a fringe benefit. Jan's income tax rate is 24%. The employer is considering reducing Jan's salary by $2,000 to $46,000 and paying the $2,000 insurance premiums. How much money will Jan save if the employer makes the change?
a.$46,000
b.$2,000
c.$480
d.$48,000
e.$11,520
Prove or disprove the statement below:
The CNA (Collective Negotiation Agreement) is considered as a benefit for public employees. Given the formula below: CNA + 13th Month Pay + other benefits > Php30,000 are taxable.
Suppose a certain government employee earns a CNA = php12,764.12, 13th Month Pay php24,291.78, and he has no other benefits. How much of his additional earning will be taxed?
Chapter 5 Solutions
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Holly was injured while working in a factory and...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Ted works for Azure Motors, an automobile...Ch. 5 - Prob. 12DQCh. 5 - Eagle Life Insurance Company pays its employees...Ch. 5 - Several of Egret Companys employees have asked the...Ch. 5 - Prob. 15DQCh. 5 - Tammy, a resident of Virginia, is considering...Ch. 5 - Andrea entered into a 529 qualified tuition...Ch. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - Prob. 20CECh. 5 - Prob. 21CECh. 5 - Ellie purchases an insurance policy on her life...Ch. 5 - Prob. 23CECh. 5 - Leland pays premiums of 5,000 for an insurance...Ch. 5 - Jarrod receives a scholarship of 18,500 from...Ch. 5 - Prob. 26CECh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - LO.2 Leigh sued an overzealous bill collector and...Ch. 5 - LO.2 Determine the effect on gross income in each...Ch. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - LO.2 Does the taxpayer recognize gross income in...Ch. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - LO.2, 5 Rosas employer has instituted a flexible...Ch. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - Prob. 51PCh. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - Prob. 57PCh. 5 - Prob. 59CPCh. 5 - Prob. 1RPCh. 5 - Prob. 2RPCh. 5 - Prob. 3RPCh. 5 - Prob. 4RPCh. 5 - Prob. 1CPACh. 5 - Linda is an employee of JRH Corporation. Which of...Ch. 5 - Kim was seriously injured at her job. As a result...Ch. 5 - Danny received the following interest and dividend...Ch. 5 - Prob. 5CPA
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