Harry Is a CPA Employed as a Manager by a Regional

question 85

Multiple Choice

Harry is a CPA employed as a manager by a regional accounting firm.The firm pays Harry's dues to professional organizations and $175 monthly for her personal parking place at the office.Only managers and partners receive these benefits.
I.Both payments are working condition fringe benefits.
II.These benefits are excludable for Harry even though they discriminate in favor of higher-paid employees.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Consumers

Individuals or entities that purchase goods and services for personal use or consumption.

External Costs

Costs incurred as a result of an economic activity that affects third parties who did not choose to incur that cost.

Free Enterprise

An economic system where private businesses operate in competition, largely free of state control, with the prices of goods and services determined by the open market.

Capital

Financial assets or the financial value of assets, such as buildings, machinery, and equipment, used to produce goods and services.