Harry Is a CPA Employed as a Manager by a Regional

question 85

Multiple Choice

Harry is a CPA employed as a manager by a regional accounting firm.The firm pays Harry's dues to professional organizations and $175 monthly for her personal parking place at the office.Only managers and partners receive these benefits.
I.Both payments are working condition fringe benefits.
II.These benefits are excludable for Harry even though they discriminate in favor of higher-paid employees.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms in a perfectly competitive market to make zero economic profit, balancing supply and demand.

Maximum Profits

The highest possible financial gain that a business can achieve in a given period, optimizing revenue while minimizing costs.

Long-run Equilibrium

A state in which supply equals demand and all factors of production and markets are in balance, typically considered in the context of perfect competition.

Purely Competitive

A market scenario where products are identical, leading to numerous sellers and buyers where no single entity can influence market prices.