Adam Repairs Power Lines for the Egret Utilities Company

question 70

Multiple Choice

Adam repairs power lines for the Egret Utilities Company.He is generally working on a power line during the lunch hour.He must eat when and where he can and still get his work done.He usually purchases something at a convenience store and eats in his truck.Egret reimburses Adam for the cost of his meals.

• A)Adam must include the reimbursement in his gross income.
• B)Adam can exclude the reimbursement from his gross income since the meals are provided for the convenience of the employer.
• C)Adam can exclude the reimbursement from his gross income because he eats the meals on the employer's business premises (the truck).
• D)Adam may exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home.
• E)None of these.

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Definitions:

Scope of Duties

The range or extent of responsibilities and tasks that a job entails, as defined by an employment contract or position description.

Right of Recovery

The legal ability to seek or obtain restitution, compensation, or remedy for losses or damages that have been incurred.

Intentionally Harm

The deliberate action to cause damage or injury to another person or entity.

Unpaid Wages

Compensation that has been earned by an employee but has not yet been paid by the employer.