1) Which of the following is a taxable benefit?

(a) A cash Christmas gift to an employee from the employer valued at $450.

(b) Payment of the tuition for an employee completing a degree that will benefit the employer.

(c) A 20% discount on the employers merchandise, available to all employees.

(d) Subsidized meals offered to all employees of the company assuming the price is approximately equal to the cost.

2) Braedan Powers purchased an unlimited life franchise at a cost of $100,000 during 2019. The maximum tax deduction related to the franchise for the taxation year ending December 31, 2019 is:

(a) $5,000

(b) $7,500

(c) $2,500

(d) $37,500

3) Cody operates a small consulting business from his home. The office in his home is his principal place of business. Which of the following correctly describes the home office expenses that can be deducted for tax purposes for 2019?

(a) Cody can only deduct property taxes, utilities, and repairs.

(b) Cody can deduct mortgage interest, property taxes, utilities, insurance, and repairs.

(c) Cody can only deduct property taxes and utilities.

(d) Cody does not qualify for home office deductions.

Note: Show all the calculations.