Ramsey Corporation Allows an Employee, Corrine, to Use a Company

question 52

Multiple Choice

Ramsey Corporation allows an employee, Corrine, to use a company car for her vacation to San Diego.
I.Corrine will not need to recognize the value of the use of the car since it was not cash.
II.A "cash equivalent approach" is used to measure the amount of income that must be recognized by Corrine.
III.The employer/employee relationship indicates that the receipt of the use of the car is a type of compensation for services rendered.
IV.Income recognition is not necessary in this case.
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• A)Only statement I is correct.
• B)Only statement IV is correct.
• C)Only statements II and III are correct.
• D)Only statements I and IV are correct.
• E)Only statements II, III, and IV are correct.

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Definitions:

Trache/o

A combining form used in medical terms that relates to the trachea, the large airway leading from the larynx to the lungs.

Bronch/o

A combining form denoting relation to the bronchi, the major air passages of the lungs.

Laryng/o

A prefix related to the larynx or voice box, often used in medical terminology.

Cheyne-Stokes Respiration

A pattern of breathing characterized by a gradual increase in the depth of breaths followed by a decrease, resulting in temporarily stopped breathing, often seen in cases of heart failure or brain damage.