The Perfection Tax Service Gives Employees $12

question 61

Multiple Choice

The Perfection Tax Service gives employees $12.50 as "supper money" when they are required to work overtime, approximately 25 days each year. The supper money received:

• A)Must be included in the employee's gross income.
• B)Must be included in the employee's gross income if the employee does not spend it for supper.
• C)May be excluded from the employee's gross income as a "no-additional cost" fringe benefit.
• D)May be excluded from the employee's gross income as a de minimis fringe benefit.
• E)None of these.

---

Definitions:

Good Z

A hypothetical product or service used in economic examples to discuss theories and concepts.

Cornstalks

The stems of corn plants, which can be used as fodder for animals, in biofuel production, or as a raw material in various industries.

Complements In Production

Goods that are produced together in the same process or that increase productivity when used together.

Corn

A cereal plant that yields large kernels on a cob, used for food for humans and livestock, and as a raw material in industry.