The Employees of Mauve Accounting Services Are Permitted to Use

question 12

Multiple Choice

The employees of Mauve Accounting Services are permitted to use the copy machine for personal purposes, provided the privilege is not abused.Ed is the president of a civic organization and uses the copier to make several copies of the organization's agenda for its meetings.The copies made during the year would have cost $150 at a local office supply.

• A)Ed must include $150 in his gross income.
• B)Ed may exclude the cost of the copies as a no-additional-cost fringe benefit.
• C)Ed may exclude the cost of the copies only if the organization is a client of Mauve.
• D)Ed may exclude the cost of the copies as a de minimis fringe benefit.
• E)None of these.

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Definitions:

Tunica Intima

The innermost layer of a blood vessel, composed of endothelial cells that line the interior surface of the vessel.

Endothelium

A thin layer of cells lining the interior surface of blood vessels and lymphatic vessels.

Popliteal

Referring to the area behind the knee where the popliteal artery and vein are located, involved in the circulation to the lower leg.

Descending Aorta

The portion of the aorta that extends downwards from the arch of the aorta, distributing oxygenated blood to the lower parts of the body.