Marion Kline was recently elected mayor of a large mid-western city that furnishes its mayor with an official residence for occupancy during the term of office. The residence (house and gardens) is owned and maintained by the city, and the mayor doesn’t pay any rent. Marion and her family are required to live in the residence so that she can carry out the many social and ceremonial obligations of her office. Many of these ob-ligations occur in the evenings and on weekends. The fair rental value of the mayoral residence is $60,000 annually. Must Marion recognize the value of her employer-provided housing as taxable compensation?