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Which of the Following Employer Awards Is Nontaxable to the Employee

Question 26

Multiple Choice

Which of the following employer awards is nontaxable to the employee?


A) A, Inc., pays E $400 in recognition of her 10 years of service to the company.
B) B, Inc., pays $375 for a watch that it awards to F in recognition of his four years of service to the company.
C) C, Inc., pays $400 for a watch that it awards to G in recognition of his safety achievements with the company.
D) All of the above awards are nontaxable.

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