Chapter Exercises Fringe Benefit Tale c. P50,000 winnings from PCSO and Philippine lotto d. Prizes from S&R (P10,000), Gateway (P10,000), and Glorieta (P10,000) or a total of P30,000 5. Which of the following is a fringe benefit not covered by the fringe benefit tax a. De minimis benefit. b. Housing privileges granted to rank and file employees. C. Fringe benefits granted as a result of the nature of the business, trade, or profession of the employer. d. All of these. 6. The following earnings are subject to fringe benefit tax, except a. Salary of a rank and file employee b. Housing necessary for trade and for the convenience of the employer c. Food allowance for the convenience of the employer and necessary in the conduct of the business d. All of the above 7. The following are exempt fringe benefits, except for one a. Fringe benefits given to rank and file employee. b. Fringe benefit given for the convenience of the employee. c. When the fringe benefit is required by the nature of or necessary to the trade, business or profession of the employer. d. Rice benefit amounting to P1,500 a month. 8. Which of the following benefits is not subject to the fringe benefits tax? a. Contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans b. Housing c. Expense account d. Vehicle of any kind 9. Statement 1: Household of the employee borne by the employer such as salaries of household help, personal driver and other similar personal expenses are taxable fringe benefits. Statement 2: A fringe benefit which is not subject to the fringe benefit tax is returnable income of the employee. a. Statements 1 & 2 are false b. Statement 1 is true but statement 2 is false c. Statement 1 is false but statement 2 is true d. Statements 1 and 2 are true 175