Which of the Following Item(s)must Be Included in the Income

question 32

Multiple Choice

Which of the following item(s) must be included in the income of the respective employees?

• A)ABC Hospital Corporation provides free meals in the hospital cafeteria to employees while on duty in order that they be available for emergency calls.
• B)The state of California highway patrol organization provides its officers with a daily meal allowance to compensate them for meals eaten at any location while they are on duty.
• C)IBX Corporation requires its employees to work overtime three evenings each year when the company takes inventory.The corporation pays to provide catered dinners on its premises on these evenings.
• D)More than one,but not all,of the amounts must be included in income.

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Definitions:

Flotation Costs

Expenses incurred by a company when it issues new securities, including fees to underwriters, legal fees, and registration fees.

WACC

The Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital, where each category of capital is proportionately weighted.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary based on the taxable amount or income.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.