Question

19. All of the following fringe benefits provided by an employer may be ovided by an employer may be excluded from an employee's gross income excepti (P 4-11) country club dues b. membership fees in professional organizations c. athletic facilities on employer's premises d unused airline seats for airline employees dable, in full, from an employee's gross income? 20. Which of the following is not a working condition fringe benefit excludable, in full, from an empy (P 4-12) Uniforms b. Parking c. Employee professional dues d. Employee professional journals 21. Blaine received 100 shares of stock as a dividend from Alloy Corporation. At the time he received the dividend, the stock was selling for S10 per share. At the end of the year, the stock was selling for $15 per share. How much must Blaine include in his gross income as a result of this transaction? (P4-19) a b. c. d. $1,000, the value of the stock when he received it $1,500, the value of the stock at tax year end S-0-, because his basis in the stock he owned was $2,000 S-0-, because stock dividends are specifically excluded from tax 22. Richard rented a building from Paul for $3,500 per month on 1-1-2020. Richard refurbished the interior, painted the exterior a added a roof at a cost of $50,000 that increased the value of the building by S40,000. Richard continued to pay Paul $3,500 per month. How much must Paul include in gross income this year as a result of Richard's rent and renovations? See page 4-21 a. $ -0- b. $40,000 c. $42,000 d. $50,000 e. $82,000

Answer 1

19) d.

unused airline seats for air line employees which is not exclude from gross income.

20) d.

employee professional journals is not a working condition fringe benefit.

21)d.

devidend is not included in taxable income of any person .because devidends are paid to share holders after the deduction of tax.

22)c.

paul include only $42000 (3500*12 months).