Which of the following will result in the recognition of gross income? a. Gails employer allows her
Question:
Which of the following will result in the recognition of gross income?
a. Gail’s employer allows her to set aside $4,000 from her wages to cover the cost of daycare for Gail’s four-year old daughter. Gail’s daycare costs are $4,300 for the year.
b. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $1,200. The cost of the sofa to the furniture store is $1,100 and the sofa normally sells for $1,700.
c. Jayden’s employer purchases her commuting pass for the subway at a cost of $225 per month.
d. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer’s Weekly, a trade magazine for attorneys.
e. None of the above will result in recognition of gross income.
Step by Step Answer:
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill