For each independent situation, determine the amount, if any, that is includible in the gross income of
Question:
For each independent situation, determine the amount, if any, that is includible in the gross income of the employee.
a. The employee of a motel has the choice w of free lodging on the premises (fair market value $400 per week) or extra + cash compensation. He is not required to live on premises. He chooses the lodging.
b. An employee arranges to have his annual bonus, $1,000, paid directly to his son. His objective is to make a wedding gift to the son.
c. An employee earns a salary of $500 per week. Pursuant to a court order, $100 of his salary goes to his ex-wife for child support.
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a In situation a the fair market value of the lodging provided to the employee is 400 per wee...View the full answer
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Related Book For 
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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