Which of the Following Item(s)must Be Included in the Income

question 25

Multiple Choice

Which of the following item(s) must be included in the income of the respective employees?

• A)ABC Hospital Corporation provides free meals in the hospital cafeteria to employees while on duty in order that they be available for emergency calls.
• B)The state of California highway patrol organization provides its officers with a daily meal allowance to compensate them for meals eaten at any location while they are on duty.
• C)IBX Corporation requires its employees to work overtime three evenings each year when the company takes inventory.The corporation pays to provide catered dinners on its premises on these evenings.
• D)A hotel requires its hotel manager to live in a suite without charge in order to be on call outside her normal work hours.

---

Definitions:

Original Cost

The initial purchase price or investment made in acquiring an asset, including any related acquisition costs.

Leasehold

An interest in land or property which is held on a lease.

Lessor

A person or entity that rents out property or equipment to another party, known as the lessee, under the terms of a lease agreement.

Lessee

A person or entity that leases or rents property or equipment from another, known as the lessor.