Question $9($Chapter $5)$

Please determine the tax consequences to the employee of the following, independent fringe benefits.

$($a$)$ Tesla sells its Model Y car to customers for $$43,000.$ Each car costs Tesla $$25,000$ to produce. Employees can buy a Model Y car for $$20,000.$

Amount Excluded from Employee's Income:

Amount Included in Employee's Income:

$($a$)$ The Sonoma Mission Inn & Spa allows its employees to receive free massages. Employees can make an appointment for their massage up to one month in advance. Massages cost $$225$ for customers.

Amount Excluded from Employee's Income:

Amount Included in Employee's Income:

$($b$)$ PwC provides all employees free parking in the garage located in the same building as its downtown San Francisco offices. Non$-$employees who park in the garage pay $$3,900$ for an annual parking pass $($ $$\frac{325}{m}$onth. PwC does not own the parking garage.

Amount Excluded from Employee's Income:

Amount Included in Employee's Income:

PLEASE SHOW ALL WORK!