Which of the Following Fringe Benefits for Meals Is Subject

question 37

Multiple Choice

Which of the following fringe benefits for meals is subject to the 50% deduction limit?

• A)Meals furnished to your employees at the work site when you operate a restaurant
• B)Meals furnished to your employees as part of the expense of a company picnic
• C)Meals furnished to your employees at your place of business when more than half of these employees are provided the meals for your convenience
• D)Meals furnished to a customer during a business discussion

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Definitions:

Disposable Income

Monetary resources for household use in saving and spending subsequent to income tax deductions.

Consumption

The act of using goods and services for personal needs or wants, including basics like food and housing to luxury items.

Disposable Income

Resources allocated for household expenditure and savings after income tax expenses.

Consumption

Families making use of goods and services.