Victoria is an employee of The Bellamy Corporation. During a recent business trip, one of Victoria's connecting flights was overbooked. Because Victoria did not have a business meeting until the next day, she volunteered to take the next available flight. The airline gave Victoria a $20 meal ticket and a coupon worth $100 off any future flight on the airline for giving up her seat on the overbooked flight. Has Victoria realized income from the receipt of the meal ticket and the coupon? Explain in terms of the income tax concepts.

Question

Quizplus · Accepted Answer

The Answer of Victoria is an employee of The Bellamy Corporation. During a recent business trip, one of Victoria's connecting flights was overbooked. Because Victoria did not have a business meeting until the next day, she volunteered to take the next available flight. The airline gave Victoria a $20 meal ticket and a coupon worth $100 off any future flight on the airline for giving up her seat on the overbooked flight. Has Victoria realized income from the receipt of the meal ticket and the coupon? Explain in terms of the income tax concepts.

Victoria Is an Employee of the Bellamy Corporation