Harry is a CPA employed as a manager by a regional accounting firm.The firm pays Harry's dues to professional organizations and $175 monthly for her personal parking place at the office.Only managers and partners receive these benefits.
I.Both payments are working condition fringe benefits.
II.These benefits are excludable for Harry even though they discriminate in favor of higher-paid employees.

Question

Harry is a CPA employed as a manager by a regional accounting firm.The firm pays Harry's dues to professional organizations and $175 monthly for her personal parking place at the office.Only managers and partners receive these benefits.
I.Both payments are working condition fringe benefits.
II.These benefits are excludable for Harry even though they discriminate in favor of higher-paid employees.
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Quizplus · Accepted Answer

Both statements are correct. The payments for Harry's dues to professional organizations and her personal parking place at the office are working condition fringe benefits that are excludable for her even though they discriminate in favor of higher-paid employees.

Harry Is a CPA Employed as a Manager by a Regional