Ridge Is the Manager of a Motel

question 15

Multiple Choice

Ridge is the manager of a motel.As a condition of his employment,Ridge is required to live in a room on the premises so that he would be there in case of emergencies.Ridge considered this a fringe benefit,since he would otherwise be required to pay $600 per month rent.The room that Ridge occupied normally rented for $60 per night,or $1,500 per month.On the average,90% of the motel rooms were occupied.As a result of this rent-free use of a room,Ridge is required to include in gross income.

• A)$0.
• B)$600 per month.
• C)$1,500 per month.
• D)$1,350 ($1,500 * .90 = $1,350).
• E)None of the above.

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Definitions:

Wernicke's Area

A region in the brain associated with understanding spoken language.

Aphasia

A condition characterized by the loss or impairment of the ability to communicate verbally or in writing, typically due to damage to the brain.

Amygdala

Two lima-bean-sized neural clusters in the limbic system; linked to emotion.

Receptive Language

Being able to interpret and comprehend spoken or written language.