[21] Ginger Corporation provides a nondiscriminatory plan under which its employees are able to choose their fringe benefits up to $2,000 in value per year from the following: Cash Medical reimbursements Premiums on major medical insurance Premiums on up to $50,000 of group term life insurance If an employee chooses major medical insurance premiums worth $950, medical reimbursements of $300, group term life insurance premiums of $50, and cash of $700, how much may the employee exclude from gross income? A. $0 B. $300 C. $1,250 D. $1,300 [22] Elmer has been a faithful employee of the Bold Dairy Co. for 25 years. In recognition of Elmers length of service, Bold Dairy held a banquet and presented Elmer with a gold watch and a brass cow, with a cost and value of $500. The award was not a qualified plan award. Elmers meal at the banquet was valued at $30. Bold Dairy was able to expense the banquet in full and $400 of the award. Later in the year, Elmer received a cash Christmas gift of $50 (as did other employees), and Bold Dairy was able to expense $25. How much income must Elmer report? A. $0 B. $150 C. $475 D. $550