Lex is employed at VD’s corporate headquarters and often works late hours. The headquarters building is located in a high-crime urban area. As a result, corporate policy is that any employee leaving the premises after 7:00 P.M. must take a cab home rather than walk or use the subway. VD pays the cab fare. However, it doesn’t pay employee commuting expenses under any other circumstances. This year, VD spent $1,080 on cab fare for Lex.