The First Chance Casino has gambling facilities, a bar, a restaurant, and a hotel.All employees are allowed to obtain food from the restaurant at no charge during working hours.In the case of the employees who operate the gambling facilities, bar, and restaurant (60% of all of Casino's employees) , the meals are provided for the convenience of the Casino.However, the hotel workers demanded equal treatment and therefore were also allowed to eat in the restaurant at no charge while they are at work.Which of the following is correct?
A) All the employees are required to include the value of the meals in their gross income.
B) Only the restaurant employees may exclude the value of their meals from gross income.
C) Only the employees who work in gambling, the bar, and the restaurant may exclude the meals from gross income.
D) All of the employees may exclude the value of the meals from gross income.
E) None of these.
Correct Answer:
Verified
Q63: The de minimis fringe benefit:
A)Exclusion applies only
Q64: The Royal Motor Company manufactures automobiles.Nonmanagement employees
Q65: Kristen's employer owns its building and provides
Q66: James, a cash basis taxpayer, received
Q67: Evaluate the following statements: I.De minimis fringe
Q69: Randy is the manager of a motel.As
Q70: Louise works in a foreign branch of
Q71: Under Swan Company's cafeteria plan, all full-time
Q72: In the case of interest income from
Q73: An employee can exclude from gross income
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents