Rex Is a Programmer with Monon Electronics Corporation

question 99

Multiple Choice

Rex is a programmer with Monon Electronics Corporation. His annual salary is $50,000. As part of his compensation package, he receives a term-life insurance policy equal to his annual salary. All members of the programming staff receive this benefit. Members of the sales staff have a cafeteria plan from which to select various benefits including life and health insurance coverage.
I.Rex has an excludable amount of income because of the nature of his employment benefit.
II.Rex must include $50,000 in his gross income because that is the value of the insurance benefit.
III.Rex must include the cost of the insurance policy in his gross income.
IV.If the benefit is only available to "key" employees and Rex is a "key" employee, he may exclude the cost of the premiums paid from his gross income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Only statement III is correct.
• D)Statements I and IV are correct.
• E)Statements II and IV are correct.

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Definitions:

Twisted Perspective

An artistic technique where a figure is depicted in a profile view while some parts of the same figure are shown in frontal view.

Descriptive Convention

Established methods and rules in art or literature that guide the representation or description of subjects, often based on cultural or historical practices.

Optical Convention

Established methods and practices in art and design that simulate how the human eye perceives the world.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for human use and consumption.