Bob Is a Machinist in a Remote Alaskan Crab-Freezing Plant

question 132

Essay

Bob is a machinist in a remote Alaskan crab-freezing plant. The plant is accessible only by boat or airplane and has no available lodging for rent. Bob's employer provides him with lodging at the plant and pays for all of his electricity, gas, and other utilities, valued at $700 per month. Is the value of the lodging taxable to Bob? Explain.

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Definitions:

Bribery of Foreign Officials

The act of offering or giving anything of value to foreign government officials with the intent to influence their decisions in favor of the briber.

Slamming

An illegal telecommunications practice where a customer's telephone service is switched to another provider without their consent.

Consumers

Individuals or groups that purchase goods or services for personal use.

Embezzlement

Misappropriation or theft of funds placed in one's trust or belonging to one's employer.