Jenna works at ABC Corporation and is entitled to several fringe benefits. Included in these fringe benefits
Question:
Jenna works at ABC Corporation and is entitled to several fringe benefits. Included in these fringe benefits are the following item:
a) A cafeteria plan where she can choose between $300 or life insurance coverage; $200 or child care and $500 or dental insurance. She chooses $300, child care, and dental insurance.
b) She is also entitled to employee discounts on window cleaning services ABC provided to customers. She pays $110 for services that are offered to the public at $200.
c) She gets to stay at a hotel that is owned by ABC for free. The hotel is part of a division at ABC that she does not work in. The value of those services is $200.
d) She is reimbursed $3,000 for undergraduate tuition by her employer.
Required: How much of these benefits are included in her gross income?
Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone