Adam Repairs Power Lines for the Egret Utilities Company

question 70

Multiple Choice

Adam repairs power lines for the Egret Utilities Company.He is generally working on a power line during the lunch hour.He must eat when and where he can and still get his work done.He usually purchases something at a convenience store and eats in his truck.Egret reimburses Adam for the cost of his meals.

• A)Adam must include the reimbursement in his gross income.
• B)Adam can exclude the reimbursement from his gross income since the meals are provided for the convenience of the employer.
• C)Adam can exclude the reimbursement from his gross income because he eats the meals on the employer's business premises (the truck).
• D)Adam may exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home.
• E)None of these.

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Definitions:

Flashback

An intense, often distressing, memory or experience that a person relives, usually associated with traumatic events.

Fact Witness

A person who testifies in court about what they observed or experienced directly, providing evidence without interpreting its legal implications.

Credibility

The quality of being trusted and believed in, often important in establishing expertise or reliability in a given field.