Flamingo Corporation furnishes meals at cost to its employees by means of a cafeteria it maintains. The cost of operating the cafeteria is not subject to the overall limitation (50%).

Question

Quizplus · Accepted Answer

The cost of operating an employee cafeteria is generally not subject to the 50% limitation on meal expenses because it is considered a de minimis fringe benefit.

Flamingo Corporation Furnishes Meals at Cost to Its Employees by Means