Julia spends her summers away from college as a forest ranger in a remote area near Mt. McKinley, Alaska. She lives in a remote dormitory where she also receives free meals. The dormitory's location permits rangers to be on call in case of an emergency.
I.The value of the lodging is excluded from Julia's gross income.
II.The value of the meals is excluded from Julia's gross income.

Question

Julia spends her summers away from college as a forest ranger in a remote area near Mt. McKinley, Alaska. She lives in a remote dormitory where she also receives free meals. The dormitory's location permits rangers to be on call in case of an emergency.
I.The value of the lodging is excluded from Julia's gross income.
II.The value of the meals is excluded from Julia's gross income.
​

Quizplus · Accepted Answer

The lodging and meals provided to Julia are considered nontaxable fringe benefits because they are provided for the convenience of the employer and are necessary for Julia to perform her job as a forest ranger. Therefore, both statements I and II are correct.

Julia Spends Her Summers Away from College as a Forest