1. Which of the following is a fringe benefit excluded from income?

a. WAS WRONG

b.Alfa-Bet, a high-tech corporation, pays for each employee's membership at the 24 Hour Biceps Gym closest to each Alfa-Bet office.

c.Quickchat Inc. gives each employee a $10 gift card to the local coffee shop on National Coffee Day.

d.A mechanic at Denise's employer, a car rental company, provides $1,000 of repair services to Denise's personal car for free.

2. Which of the following will result in the recognition of gross income?

a.Gail's employer allows her to set aside $4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $4,300 for the year.

b.Hannah purchases a new sofa from her employer, Sofas-R-Us, for $1,200. The cost of the sofa to the furniture store is $1,100 and the sofa normally sells for $1,700.

c.Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys.

d.Jayden's employer purchases her commuting pass for the subway at a cost of $325 per month.

3. Which of the following prizes or awards is not taxable?

a.A $100 gift card received as a prize in a raffle run by the local school parent teacher organization.

b.Awards for superior performance on the job.

c.A crystal paperweight worth $125 given to an employee for achieving 10 years of service to the company.

d.Prizes from a television game show.

e.All of these choices are taxable.WAS WRONG

4. Huihana receives 4 tickets to the local professional football game for achieving 20 years of employment with her employer. The tickets cost the employer $390 and have a market value of the same on the date awarded. Huihana is in the highest tax bracket for single taxpayers. How much gross income will Huihana recognize on the receipt of the tickets?

a.$390

b.$200

c.$25

d.$0 WAS WRONG

e.$50 or $59.50 including the net investment income tax

5. Hillary gets divorced in 2019 and is required to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years and $120 per month thereafter. How much of her 2020 payments are deductible as alimony?

a.$1,440 WAS WRONG

b.$0

c.$960

d.$2,400