Determine the (1) deductible employer amount, and (2) taxable employee amount for each of the following employer-provided
Question:
Determine the (1) deductible employer amount, and (2) taxable employee amount for each of the following employer-provided benefits.
a. Kay and several of her fellow employees grew tired of driving to and from work. This year they decided to get together and buy a luxury van. Their employer is willing to help pay the cost.
1. Deductible Employer Amount:
2. What is the per month exclusion for the employees?
b. The employer has a small room that contains a refrigerator, a microwave, a beverage machine, and a table where a few employees can eat. Each day the employer puts out donuts and coffee for the employees at a cost of about $3,000 per year.
1. Deductible employer amount of the cost of the meal through 2025: ___%
2. Taxable Employee Amount:
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren