Sally and Bill are married and file joint returns. In 2014, Bill, an accountant, has a salary of $75,000, and Sally receives a salary of $25,000 as an apartment manager. What are the tax consequences of the following benefits that Bill's and Sally's employer provide?
a. Bill receives a reimbursement of $5,000 for child care expenses. Sally and Bill have three children who are not yet school age.
b. Bill and Sally are provided a free membership at a local fitness and exercise club that allows them to attend three aerobic exercise sessions per week. The value of this type of membership is $1,600 per year.
c. Bill is provided free parking at work. The value of the parking is $1,800 per year.
d. Sally is provided with a free apartment. Living in this apartment is a condition of her employment. Similar apartments rent for $1,200 per month.