Question

Mauve Company permits employees to occasionally use the copying machine for personal purposes. The copying machine is located in the office where the higher paid executives work, so they occasionally use the machine. However, the machine is not convenient for use by the lower paid warehouse employees and, thus, they never use the copier. The use of the copy machine may not be excluded from gross income because the benefit is discriminatory. True False

Answer 1

This is a false statement.    

Explanation:

The employees of Mauve Company are permitted to use the copying machine in the office for personal purpose occasionally. The copying machine is placed in the room where the higher officials work. So the use of the machine was limited. It is difficult for the low wage employees and employee working in warehouse to use the copying machine as the machine is placed in high official’s room. So the low wage employees never use the copying machine. The use of the copying machine may not be excluded from gross income as the benefit is unfair.