The First Chance Casino Has Gambling Facilities, a Bar, a Restaurant

question 81

Multiple Choice

The First Chance Casino has gambling facilities, a bar, a restaurant, and a hotel.All employees are allowed to obtain food from the restaurant at no charge during working hours.In the case of the employees who operate the gambling facilities, bar, and restaurant (60% of all of Casino's employees) , the meals are provided for the convenience of the Casino.However, the hotel workers demanded equal treatment and therefore were also allowed to eat in the restaurant at no charge while they are at work.Which of the following is correct?

• A)All the employees are required to include the value of the meals in their gross income.
• B)Only the restaurant employees may exclude the value of their meals from gross income.
• C)Only the employees who work in gambling, the bar, and the restaurant may exclude the meals from gross income.
• D)All of the employees may exclude the value of the meals from gross income.
• E)None of these.

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Definitions:

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type.

Procurement Costs

Expenses associated with acquiring goods and services needed for business operations.

Number Of Suppliers

This refers to the total count of individual suppliers that a business sources its materials, goods, or services from.

Landed Costs

The total price of a product once it has arrived at a buyer's doorstep, including the purchase price, transportation fees, customs, duties, and other taxes.