Does the taxpayer recognize gross income in the following situations? 

a) Ann is a nurse working in a community hospital. She is not required to take her lunch on the hospital premises, but she can eat in the cafeteria at no charge. The hospital adopted this policy to encourage employees to stay on the premises and be available in cases of emergencies. During the year, Ann ate most of her meals on the premises. The total value of those meals was $750.

b) Ira is the manager of a hotel. His employer will allow him to live in one of the rooms rent-free or to receive a $600 per month cash allowance for rent. Ira elected to live in the hotel.

Answer rating: 100% (QA)

A Ann works as a nurse in a community hospital She is not compelled to have her l... View the full answer