1. The corporation gave a brand new car to its sales manager. The fringe benefit given is-

a.

subject to fringe benefit tax based on the provisions of the tax code

b.

subject to fringe benefit tax because it was given to a rank-and-file employee

c.

exempt from the fringe benefit tax because it is required by the nature of or necessary to the trade or

business of the employer

1. In 2020 Xtra Corporation furnished and granted used of its condominium unit to its Executive Vice-President. The fair market value of the property is P4,800,000 while the acquisition cost is P3,000,000. The monthly fringe benefit tax due thereon is -

a.

P5,384.62

b.

P4,705.88

c.

P88,235.00

d.

P58,823.53

1. Based on the data in Number 7 above, the deductible expense from the gross income of Xtra Corporation is-

a. P14,705.88

b. P4,705.88

c. P12,132.35

d. Answer not given

Timothy, the VP for marketing of SGC Co. was given a privilege to attend business meeting in Europe. He incurred the following expenses with supporting documentary evidences:

Plane ticket - ordinary (round trip)$2, 040

Hotel, room for four days1, 600

Inland travel1, 470

Assume that $1- 50

9. How much is the total deductible fringe benefit expense?

A. P 6,352

B. P20,000

C. P72,235

D. Answer not given