oblem $5-42($LO$.2)$

Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer$-$owned home, which is three blocks from his company office. The company$-$provided home is equipped with high$-$speed internet access and several telephone lines. Tim receives telephone calls and e$-$mails that require immediate attention any time of day or night, as the company's business is spread all over the world. A full$-$time administrative assistant resides in the house to assist Tim with urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $$9,000$ per month. Tim is also provided with free parking at his company's office. The value of the parking is $$385$ per month.

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a$.$Complete the statements below regarding Tim's exclusion issue and what he must include in his gross income for $2024.$

Section $119$ excludes from income the value of meals and lodging provided to the employee and the employee's spouse and dependents under the following conditions:

The meals and$/$or lodging are furnished by the employer

at the employee's homeon the employer's business premisesat either work or employee's homeon the employer's business premises

for the convenience of

the employeethe employerboth the employee and employerthe employer

$.$

In the case of lodging, the employee

can chooseis requiredis required

to accept the lodging as a condition of employment.

Tim could argue that this house is an extension of

the employer's officehis employment contractthe employer's office

because of the extensive business activities conducted in the home.

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Section $119$ excludes from income the value of meals and lodging provided to the employee and the employee's spouse and dependents under certain circumstances. The convenience of the employer test is intended to focus on the employer's motivation for furnishing the meals and lodging rather than on the benefits received by the employee.

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b$.$ The amount associated with the free parking that Tim must include in his gross income per month is