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Business, 11.02.2020 19:32 xxtonixwilsonxx

The following scenarios deal with various general fringe benefits. From the dropdown list, select the correct amount which will be excluded from or included in gross income. A. Jim is an employee of Fast Tax Prep, Inc. All employees of Fast Tax Prep are eligible for a 50% discount on the preparation of their income tax returns. Jim's tax return preparation would normally have cost $300, but he paid only $150 because of the discount.
B. Mabel is a lawyer for a large law firm, Winken, Blinken, and Nod. Winken pays Mabel's annual license renewal fee of $400 and her $300 annual dues to the American Lawyers' Association. Mabel also takes advantage of Winken's educational assistance plan and receives payment for the $6,000 cost of taking two night school courses in consumer law.
C. Lori Company runs a nursery near its offices. Employees are allowed to leave their children at the nursery free of charge during working hours. Nonemployees may also use the facility at a cost of $300 per month per child. Dolph is an employee of Lori with two children who stay at Lori's facility while Dolph is at work.
D. At the sporting goods store where Melissa works, her employer lets all employees buy goods at a 40% discount. Melissa purchases for $300 camping and fishing supplies that retail for $500. The goods had cost her employer $250.

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