Randy Is the Manager of a Motel

question 44

Multiple Choice

Randy is the manager of a motel.As a condition of his employment, Randy is required to live in a room on the premises so that he would be there in case of emergencies.Randy considered this a fringe benefit since he would otherwise be required to pay $800 per month rent.The room that Randy occupied normally rented for $70 per night, or $2,100 per month.On the average, 90% of the motel rooms were occupied.As a result of this rent-free use of a room, Randy is required to include in gross income.

• A)$-0-.
• B)$800 per month.
• C)$2,100 per month.
• D)$1,890 ($2,100 × 0.90).
• E)None of these.

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Definitions:

Development Theory

An extensive category of theories that seek to explain the processes, strategies, and mechanisms by which societies progress economically, socially, and politically.

Global Spending Priorities

The allocation and distribution of financial resources across various sectors globally, influenced by economic policies, societal needs, and international agreements.

Collectivism

A value system that emphasizes the importance of the group over individual achievements, promoting shared goals and responsibilities within a community.

Consumerism

The societal tendency to equate personal happiness with the purchase and consumption of material possessions.