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:

Equivalent Annual Cost

A financial assessment tool used to compare the cost effectiveness of two or more projects with different lifespans by normalizing their costs into annual equivalents.

Sunk Costs

Expenditures that have already been incurred and cannot be recovered.

Incremental Costs

Expenses that will be incurred only as a result of undertaking a specific action.

GAAP

Generally Accepted Accounting Principles; a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.