Kristen's Employer Owns Its Building and Provides Parking Space for Its

question 11

Multiple Choice

Kristen's employer owns its building and provides parking space for its employees. The value of the free parking is $150 per month. Karen's employer does not have parking facilities, but reimburses its employee for the cost of parking in a nearby garage, up to $150 per month.

• A) Kristen and Karen must recognize gross income from the parking services.
• B) Kristen can exclude the employer provided parking from gross income, but Karen must include her reimbursement in gross income.
• C) Kristen must include the value of the employer provided parking from her gross income, but Karen can exclude her reimbursement from gross income.
• D) Neither Kristen nor Karen is required to include the cost of parking in gross income.
• E) None of these.

---

Definitions:

Crimes

Acts or omissions that violate laws prescribing the ways individuals ought to behave, typically punishable by the state.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

White-Collar Criminals

Individuals who commit non-violent crimes, usually in commercial situations, for financial gain through deceit or fraud.

Federal Laws

Laws created by the federal government of a country, applicable nationwide and overriding state laws where conflict exists.