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3 years ago

Which of the following characteristics apply to taxable fringe benefits? (Check all that apply.)

Business

1 answer:

EleoNora [17]3 years ago

7 0

Answer:

Employers treat the taxable fringe benefits the same as cash compensation.

Explanation:

Taxable fringe benefits "are included in gross income and subject to federal withholding, social security, and Medicare taxes".

Fringe benefits are "perks and additions to normal compensation that companies give their employees, such as life insurance, tuition assistance, or employee discounts".

* The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.

FALSE, the taxable fringe benefit is not deductible from the employer.

* Employers treat the taxable fringe benefits the same as cash compensation.

TRUE, and as we can see on the definition above the taxable fringe benefits are treated as a compensation that comapnies giv their employees.

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On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use

Lady bird [3.3K]

Answer: $20000

Explanation:

Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.

Therefore, the payment that X Corp. can deduct in 2018 will be:

= $100,000 / 5

= $20000

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3 years ago

If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charg

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Answer:

The correct answer would be option D, Legal Market for a market price that is lower.

Explanation:

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3 years ago

George transfers cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the stock in Finch worth $80,000

kolbaska11 [484]

Answer:

Finch has an interest expense deduction of the amount of $6,300.

Explanation:

Based on the information given in a situation where Finch pays George interest of the amount of $6,300 in which the amount of $7,000 was the principal payment on the note which means that Finch will have an interest expense deduction of the amount of $6,300 reason been that the amount of interest that was paid to George which is $6,300 will be the amount that is allowed for deduction.

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3 years ago

General Mills and Nestlé work together to distribute General Mills products in about 140 international markets from Mexico to Ch

Flura [38]

Answer: a strategic channel alliance

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3 years ago

On January 1, 2020, a county government sends out property tax bills in the amount of $100,000,000. Of this amount, $15,000,000

Lesechka [4]

Answer:

B. $12,000,000

Explanation:

Hi there!

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The journal entry:

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Debit Credit

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Bad debts expense $3,000,000

Allowance for uncollectible account ledger, December 31 2020

<h3>Allowance for uncollectible account </h3>

Debit Credit

$15,000,000

$3,000,000

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3 years ago