Employees of the Valley Country Club Are Allowed to Use

question 77

Multiple Choice

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 golf during the year at no charge when the non-employee charge was $20 per round.

• A)Tom 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 gift.
• D)Tom is not required to include anything in gross income because this is a "no-additional-cost service" fringe benefit.
• E)None of the above.

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Definitions:

Organ of Corti

The Organ of Corti is a structure in the cochlea of the inner ear that contains hair cells, which convert sound vibrations into nerve impulses.

Malleus, Incus, Stapes

The three small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Cochlear Duct

A spiral-shaped cavity in the cochlea that plays a critical role in the process of hearing by converting sound vibrations into neural signals.

Cochlear Duct

A spiral-shaped cavity within the cochlea of the inner ear, playing a crucial role in converting sound vibrations into nerve impulses.