Which of the Following Fringe Benefits Is Taxable to the Employee

question 30

Multiple Choice

Which of the following fringe benefits is taxable to the employee receiving the benefit?

• A)A subscription to a tax journal provided by the employer to a corporation's tax accountant
• B)A small discount on toys granted to the salesperson for a toy store
• C)Incidental use of the company's copier by an office worker
• D)A 15 percent discount on investment real estate granted to the employee of a real estate developer
• E)All of the above are tax-free

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Definitions:

Interest Rates

The percentage of a sum of money charged for its use, influencing investment and consumption in the economy.

Investment Spending

Expenditures on new physical capital, such as buildings and machinery, and on inventory investments by businesses, contributing to economic output.

Gross Domestic Product

The total financial or market valuation encompassing all finished goods and services produced within a nation's borders in a designated period.

Aggregate Expenditure

The complete volume of financial outflows in an economy, capturing household consumption, corporate investment, expenditures by the government, and net foreign trade.