30. ABC Co. offers a cafeteria plan. All full-time employees are allowed to select any combination of the benefits below, but the total received by the employee cannot exceed $8,000 a year. I Group medical and hospitalization insurance for the employee, $3,600 a year. II. Group medical and hospitalization insurance for the employee's spouse and children. S1.200 a year. III. Child-care payments, actual cost but not more than $4,800 a year. IV. Cash required to bring the total of benefits and cash to $8,000. Which of the following statements is true? a Paul, a full-time employee, elects to receive $8.000 cash because his wife's employer provided these same insurance benefits for him. Paul is not required to include the $8,000 in gross income. b. Sue, a full-time employee, clects to receive choices I. II and $3,200 for III. Sue is required to include $3,200 in gross income. c. Sam, a full-time employee, selects choices II and III and $2,000 cash. His gross income must include the $2,000. d. All of these. e. None of these. 31. Edwin repairs television cable equipment for ABC Cable Company. He is unable to take a set lunch hour and must eat when and where he can. He usually purchases something and eats in his service truck. ABC reimburses Edwin for the cost of his meals because his flexible working hours are for the convenience of his employer. Edwin: a. Can exclude the reimbursement from his gross income since the meals are provided for the convenience of the employer. b. Can exclude the reimbursement from his gross income since it is required as a condition of employment. c. May exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home. d. Must include the reimbursement in his gross income. e. Both b. and e. 32. Alton wants to give his grandson $1,500 for his birthday. Instead, the grandson asks Alton to pay the quarterly property taxes of $1.500 on the grandson's residence. If Alton pays the property taxes, he can deduct them. a. The b. False 33. Section 212 expenses that are related to rent and royalty income are deductions for AGI. a Trie b. False O A em ago F10 F11 F12 Boletim Insert Frien F F F Fa Fe