fit Tax Chapter Exercises - Fringe Benefit Ta Glorieta he fringe e of the value is correct? 1. 10. Fringe benefit tax is computed based on the a. Monetary value of the fringe benefit b. Book value of the fringe benefit e Grossed-up monetary value of the fringe benefit d. Fair value of the fringe benefit 11. Which of the following statements regarding grossed-up monetary The grossed-up monetary value of the fringe benefit is simply a figure meant to represent the entire income earned by the employee II. The grossed-up monetary value includes the net amount of money received, the net monetary value of any property received, and the amount of fringe benefit tax. III. The grossed-up monetary value of the fringe benefit is determined by dividing the monetary value of the fringe benefit by 65% starting January 1, 2018. I only C. I, II and III b. I and II only d. None of the above of the nd a. ee. of of of the 12. Which statement is wrong? The amount on which the fringe benefit tax rate is applied is: a. The monetary value of the fringe benefit b. The grossed-up monetary value of fringe benefit The amount deductible by the employer from his/its gross income d. Reflected in the books of accounts in the two accounts of "fringe benefit expense" and "fringe benefit tax expense" C. its tax? oployee 5 XXX er such similar 13. If both the fringe benefit expense and the fringe benefit tax expense are allowed as deductions from gross income of a corporation, the entry in the books of accounts is a. Fringe benefit expense XXX Fringe benefit tax expense Cash XXX b. Fringe benefit tax expense XXX Cash XXX C. Fringe benefit expense XXX Fringe benefit tax expense XXX XXX Income constructively received XXX Cash d. Any of the above enefit 176