Which of the following fringe benefits received by an employee would be excluded

Question

Which of the following fringe benefits received by an employee would be excluded from the employee’s gross
income?
1. Employer-provided parking.
2. Dues to an athletic club paid for by the employer.
3. Tickets to the basketball game tonight.
4. Employer-provided interior decorating for a new personal residence.

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Question 210 pts

Short Company allows a 20% discount to all non-officer employees. Officers, all highly compensated, are allowed a 30% discount on company products. Short’s gross profit is 35%. Which of the following is true?

Explanation / Answer

1.

Additional benefit in excess of worker’s salary provided by the employer is a fringe benefit.

Exclusion from gross indicates non-taxable amount.

Facilities for athletic is an exclusion from gross; qualified amount of parking fee has an exclusion from gross income of employee. Therefore, (1) and (2) are correct.

Answer: 1 and 2

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