Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company’s president (Polly), who is also the majority shareholder.
The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee must be within 10 years of retirement, and the cost of the seminar is $1,500 per attendee.
The company owns a parking garage that is used by customers, employees, and the general public. Only the general public is required to pay for parking. The charge to the general public for Polly’s parking for the year would have been $3,600 (a $300 monthly rate).
All employees are allowed to use the company’s fixed charge long-distance telephone services, as long as the privilege is not abused. Although no one has kept track of the actual calls, Polly’s use of the telephone had a value (what she would have paid on her personal telephone) of approximately $600.
The company owns a condominium at the beach, which it uses to entertain customers. Employees are allowed to use the facility without charge when the company has no scheduled events. Polly used the facility 10 days during the year. Her use had a rental value of $1,000.
The company is in the household moving business. Employees are allowed to ship goods without charge whenever there is excess space on a truck. Polly purchased a dining room suite for her daughter. Company trucks delivered the furniture to the daughter. Normal freight charges would have been $750.
The company has a storage facility for household goods. Officers are allowed a 20% discount on charges for storing their goods. All other employees are allowed a 10% discount. Polly’s discounts for the year totaled $900.
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the...
Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0". a. The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee must be within 10...
Problem 5-47 (LO. 2) Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "O". a. $ The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The...
Problem 5-47 (LO. 2) Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0". a. The company has a qualified retirement plan. The company pays the cost of employees attending a retirement planning seminar. The employee...
The following italicized and bold questions I can't figure out how to solve them. Could you show how to solve this problems? Problem 5-47 (LO. 2) Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0"....
Which of the following fringe benefits received by an employee would be excluded from the employee’s gross income? 1. Employer-provided parking. 2. Dues to an athletic club paid for by the employer. 3. Tickets to the basketball game tonight. 4. Employer-provided interior decorating for a new personal residence. 1 and 2 1 and 3 2 and 4 1, 3, and 4 Flag this Question Question 210 pts Short Company allows a 20% discount to all non-officer employees. Officers, all highly...
The following scenarios deal with various general fringe benefits. From the dropdown list, select the correct amount which will be excluded from or included in gross income. a. Jim is an employee of Fast Tax Prep, Inc. All employees of Fast Tax Prep are eligible for a 50% discount on the preparation of their income tax returns. Jim's tax return preparation would normally have cost $300, but he paid only $150 because of the discount. $60 excluded from gross income...
ROLE-PLAY EXERCISE On Command Corporation PROCESS You have been assigned a role in the On Command Corporation case. Please read the general information (Introduction) about the case. Read and understand your role. Your teammates have different roles. Due the situation, you need to work with your team to produce an employee meeting, you have 15 minutes to present the statement and conduct the meeting – see the link attached with information about an employee meeting (you need to create a...
Everybody knows that email is important, but should each company develop, own, support, and maintain its own email infrastructure, or should it instead use lower-cost or free services? That is the question that Michael Jagger, CEO of Provident Security, faced as he contemplated a costly upgrade of the company’s internal email infrastructure. Founded in 1996 by Michael Jagger as a way to pay his undergraduate tuition, Provident started out as a company that provided special event security. Today, it has...
Answer questions 1-8 How do you think this would help DASE &-1 NOT SPLLING THE BEANS AT JELLY BELLY DEVELOPING A MORE PERFORMANCE APPRAISAL SYSTE be the sweetost job in the world? Why not as chocolates, gummies, gum balls, . Cheesecake, candy corns. licorice, sour car- tbeliel That's the way it is at F ind of course lotce, sour can ections, jellies, and of course let us not forget Fairfield, California-based Jelly retention, and rete. Happy workers lead to higher...
Review the following court case: Jackson v. Metropolitan Edison Co. 419 U.S. 345(1974) 1. What are the facts of this case? What is the issue? 2. In what court was it decided, and how did it get to that court? 3. What did the court below decide, and why? What did this court decide, and why? 4. What does it mean to be "affected with the public interest"? 5. What is the significance of the Fourteenth Amendment to the U.S....