Randi, a flIght Attendant, Received Wages of $30,000 in 2012

question 17

Multiple Choice

Randi, a flight attendant, received wages of $30,000 in 2012. The airline provided transportation on a stand- by basis, at no charge, from her home in Detroit to the airline's hub in Chicago. The fair market value of the commuting flights was $5,000. Also in 2012, Randi received reimbursements, under an accountable plan, of $10,000 for overnight travel, but only spent $6,000. The excess was returned. Randi became disabled in November 2012 and received worker's compensation of $4,000. What amount must Randi include in gross income on her 2012 tax return?

• A) $30,000
• B) $34,000
• C) $35,000
• D) $37,000

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Definitions:

Two-sided Test

A statistical hypothesis test which determines if there is a significant difference in either direction between the groups or variables being studied.

One-sided Test

A hypothesis test in which the alternative hypothesis specifies a direction of the statistical significance, either greater than or less than a certain value.

P-value

The probability of encountering test data at least as extreme as what has been observed, with the assumption that the null hypothesis is valid.

Two-sided Test

A hypothesis test in which the critical area of a distribution is two-sided and tests whether a sample is either greater than or less than a certain range of values.