Mary Company’s pretax accounting income is $66,000 and has the following information: Compensation expense for incentive stock options is $19,000. Interest on municipal bonds is $11,000. Unrealized gain on AFS securities is $1500. Taxable income is $66,000 + $11,000 + $19,000 - $1500. $66,000 + $11,000 - $19,000 + $1500. $66,000 - $11,000 + $19,000. $66,000 - $11,000 - $19,000 .

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Q: 15 ABC Corp. registered in 2010 made available the following financial information for TY2021:…

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Q: How much of the above payments are deductible from gross income?

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Q: Mitchell Corporation had income before income taxes of $195,000 in 2020. Mitchell’s current income…

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Q: At the end of the year, Badger Corporation has pretax financial income of $550,000. Included in the…

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Q: The Dakota Corporation had a 2021 taxable income of S20,000,000 from operations after all operating…

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Q: Fizer Pharmaceutical paid $68 million on January 2, 2021, for 4 million shares of Carne Cosmetics…

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A:

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.