Homework Answers
Computation of Arthur's gross income:
| Salary | 35,000 |
| Vacation pay | 800 |
| Christmas bonus | 1200 |
| TOTAL GROSS INCOME | 37,000 |
Employers are allowed to provide employees with $50,000 of tax-free group term life insurance coverage, hence 150 dollars paid by Arthur's employer are not taxable in Arthur's return.
A turkey falls under de minimis fringe benefits, which are benefits which are trivial in value according to the IRS and hence not taxable.
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$ 35,000 2. Arthur received the following benefits from his employer, Dragwo Salary Vacation Pay Christmas...
2. Arthur received the following benefits from his employer, Dragwood Inc. Salary $ 35,000 Vacation Pay...
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