Answer:
The answer is A) $2,000
Explanation:
According to the IRS Publication 525 (2018), Taxable and Nontaxable Income
<em>"</em><em><u>If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service</u></em><em> or safety achievement, you generally can </em><em><u>exclude its value from your income</u></em><em>. However, the amount you can exclude is limited to your employer's cost and </em><em><u>can’t be more than $1,600</u></em><em> ($400 for awards that aren’t qualified plan awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that don’t create a significant likelihood of it being disguised pay." </em>
Ed has to include the $2,000 he received as income but the $250 watch can be excluded.
The two days Lauren doesn't receive pay would be $150 × 2 = $300
Add on the cost of transportation & lodging: $300 + $250 = $550
Finally, add the cost of the concert ticket: $550 + $50 = $600
The opportunity cost of Lauren's decision to attend the concert is $600.
Businesses can act ethically by being honest and fair
Answer:
True
Explanation:
The matching principle states that only those payments and receipts which actually are paid or received. the interest accrued is not included unless it is paid
