INCOME TAXATION PRACTICE SET Topic: FRINGE BENEFITS Filipino Problem: The company paid the following fringe benefits to few employees during the month of September, 2021: Employee Position Citizenship Benefits Given Value John Gilbert Alvarez HR Director Filipino Residential Condo Unit in Makati 5,000,000.00 American Citizen Razelle Lizaso IT Analyst (resident) Macbook Air 150,000.00 Maria Ruby Bonifacio Controller Filipino Use of Corporate Car (useful life of 8 years) 1,180,000.00 Franklin Adolfo Senior Audit Manager Filipino Trip to Thailand (all expense) 750,000.00 Rocelo Becera Corporate Secretary Car named and registered to 956,000.00 Rocelo Christian Maquiso House and Lot in Pasay City, Half-American, Chief Finance Officer Half-Filipino 7,000,000.00 where he is allowed to live as long as he is in the company Presry San Pablo Vice President for Operations Filipino Monthly Grocery and Other 50,000.00 Household Allowance of All-expense trip to Baguio, Raymond Elebada Senior Marketing Manager Filipino excluding the pocket allowance of 120,000.00 70,000 De Ramos, Terence Corporate Messenger Filipino Motor vehicle with useful life of 6 125,000.00 years De Ramos, Terence Corporate Messenger Tuition Allowance for his son who Filipino just got into college 100,000.00 Delos Reyes, Syrelle Brand new Ford Mustang, with a Chief Executive Officer Mae Filipino monthly fuel allowance of P 5,000,000.00 30,000.00 Ma. Jessa Labastida Audit Member Filipino Cash Gift during her 34th birthday 30,000.00 held on September 24 Requirements: 1. Prepare a working paper (in excel and saved as PDF) for the above benefits, and compute the following for each item (Total of 36 points): a. Monetary Value (1 point each, total of 12 points) b. Grossed-up Value (1 point each, total of 12 points) c. Fringe benefit tax (1 point each, total of 12 points) INCOME TAXATION PRACTICE SET Topic: FRINGE BENEFITS Filipino Problem: The company paid the following fringe benefits to few employees during the month of September, 2021: Employee Position Citizenship Benefits Given Value John Gilbert Alvarez HR Director Filipino Residential Condo Unit in Makati 5,000,000.00 American Citizen Razelle Lizaso IT Analyst (resident) Macbook Air 150,000.00 Maria Ruby Bonifacio Controller Filipino Use of Corporate Car (useful life of 8 years) 1,180,000.00 Franklin Adolfo Senior Audit Manager Filipino Trip to Thailand (all expense) 750,000.00 Rocelo Becera Corporate Secretary Car named and registered to 956,000.00 Rocelo Christian Maquiso House and Lot in Pasay City, Half-American, Chief Finance Officer Half-Filipino 7,000,000.00 where he is allowed to live as long as he is in the company Presry San Pablo Vice President for Operations Filipino Monthly Grocery and Other 50,000.00 Household Allowance of All-expense trip to Baguio, Raymond Elebada Senior Marketing Manager Filipino excluding the pocket allowance of 120,000.00 70,000 De Ramos, Terence Corporate Messenger Filipino Motor vehicle with useful life of 6 125,000.00 years De Ramos, Terence Corporate Messenger Tuition Allowance for his son who Filipino just got into college 100,000.00 Delos Reyes, Syrelle Brand new Ford Mustang, with a Chief Executive Officer Mae Filipino monthly fuel allowance of P 5,000,000.00 30,000.00 Ma. Jessa Labastida Audit Member Filipino Cash Gift during her 34th birthday 30,000.00 held on September 24 Requirements: 1. Prepare a working paper (in excel and saved as PDF) for the above benefits, and compute the following for each item (Total of 36 points): a. Monetary Value (1 point each, total of 12 points) b. Grossed-up Value (1 point each, total of 12 points) c. Fringe benefit tax (1 point each, total of 12 points)
