Tommy, a Senior at State College, Receives Free Room and Board

question 39

Multiple Choice

Tommy, a senior at State College, receives free room and board as full compensation for working as a resident advisor at the university dormitory.The regular housing contract is $2,000 a year in total, $1,200 for lodging and $800 for meals in the dormitory.Tommy had the option of receiving the meals or $800 in cash.Tommy accepted the meals.What is Tommy's gross income from working as a resident advisor?

• A)$1,800, the entire value of the contract is compensation.
• B)$1,000, only the lodging contract must be included in gross income.
• C)$800, only the meal contract must be included in gross income.
• D)$0, the entire value of the contract is excluded from gross income.
• E)None of the above.

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Documents or pieces of information that are not considered confidential and are available to the public.

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