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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