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A Nursing Home Maintains a Cafeteria That Is Used by Employees,patients,and

question 24

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A nursing home maintains a cafeteria that is used by employees,patients,and visitors.The value of free meals provided to employees while on duty so that they may be available for emergency calls is not taxable.


Definitions:

Sinking Funds

Sinking funds are reserve accounts set aside by an organization for the purpose of repaying debt or replacing assets in the future.

Bond Indentures

Legal documents specifying the terms and conditions under which a bond is issued, including the rights of bondholders and the duties of the issuer.

Lottery

A form of gambling involving the drawing of numbers at random for a prize, often regulated by governments.

Subordinated Debentures

Debentures that have claims on assets, in the event of bankruptcy, only after senior debt as named in the subordinated debt’s indenture has been paid off. Subordinated debentures may be subordinated to designated notes payable or to all other debt.

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