The Cost of Holiday Turkeys Distributed to Employees Is Included

question 31

True/False

The cost of holiday turkeys distributed to employees is included in the employees' income.
Small tokens, like holiday turkeys, fall under the de minimis rules and are non-taxable due to the impracticality of keeping track of each employees benefit.

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Definitions:

Perfect Substitutes

Goods or services that can be used in place of one another with no loss of utility or satisfaction.

Income Effect

Refers to adjustments in consumer behavior as a result of changes in purchasing power, influencing the demand for products and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, where consumers substitute a cheaper alternative for a more expensive good.

Price

The cash value expected, required, or contributed in transaction for an item.