Question

32. Employees of the Valley Country Club are allowed to use the golf course without charge before and after working hours on Mondays when the number of players on the course is at its lowest Tom, an employee of the country club played 40 rounds of pol during the year at no charge when the nonemployee charge was 520 per round. Ton must include $800 in gross income b. Tom is not required to include anything in gross income because it is a de minimis fringe benefit. c. Tom is not required to include the $800 in gross income because the use of the course was a git. 4. Tom is not required to include anything in gross income because this is a no-additional cost service fringe benefit e. None of these

Answer 1

1. As there will be no additional cost incurred by the club as a result of Tom using the golf course, it will be a no additional cost to the company.
2. Tom is not required to include 800$ in his gross income as it is no additional cost service Fringe benefit.
3. The club won't incur any additional cost because if Tom using the course for 40 rounds and it won't be considered as a cost to the company, club would however i cur expenses even if he didn't use the course.