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The Following Is Not an Example of a Taxable Allowance

Question 5

Multiple Choice

The following is not an example of a taxable allowance:


A) Cash paid to an employee to purchase normal clothing to wear on the job.
B) Cash paid to cover living expenses.
C) Cash paid to cover the cost of a personal vehicle which may be used for company business.
D) Cash paid to cover travel expenses such as hotels, airfare, taxis, meals, etc.
E) Cash paid to cover entertainment costs not for the benefit of the company.

Correct Answer:

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