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DochEvi [55]
2 years ago
10

Kristen’s employer owns its building and provides parking space for its employees. The value of the free parking is $150 per mon

th. Karen’s employer does not have parking facilities but reimburses its employees for the cost of parking in a nearby garage up to $150 per month.
a. Kristen and Karen must recognize gross income from the parking services.
b. Kristen can exclude the employer-provided parking from gross income, but Karen must include her reimbursement in gross income.
c. Kristen must include the value of the employer-provided parking from her gross income, but Karen can exclude her reimbursement from gross income.
d. Neither Kristen nor Karen is required to include the cost of parking in gross income.
e. None of these.
Business
1 answer:
balu736 [363]2 years ago
5 0

Answer:

Neither Kristen nor Karen is required to include the cost of parking in gross income.

Explanation:

As a qualified transportation fringe, both Kristen and Karen's benefit can be excluded from gross income. Karen's reimbursement is less than the maximum exclusion amount allowed. Likewise, the value of Karen's free parking is less than the maximum exclusion amount allowed.

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Which of the following policies is the government most inclined to use when faced with a positive externality? Group of answer c
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Answer:

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Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product I49V
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In 2020, Neighbor Co-Op Inc. sells 1,000 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold
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Answer:

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b.

Date                      Account Title                                    Debit                Credit

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c.

Date                      Account Title                                    Debit                Credit

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                            Inventory                                                                   $  96

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