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-47 of the Employee Benefits. Jet Corporation is involved in the purchase and rental of several large apartment complexes. Questions have been raised about

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-47 of the Employee Benefits. Jet Corporation is involved in the purchase and rental of several large apartment complexes. Questions have been raised about the treatment of several items pertaining to Jet Corporation and its employees. Jet Corporation employs a manager for each complex. The manager is required to occupy a unit in the complex in order to be available at all hours. The average rental value of the units is $12,000 per year. The cor- poration's president finds that it is beneficial to the corporation if he entertains bankers and others with whom Jet does business. He does such entertaining about once each month and the corporation pays the cost. Business is discussed at the meals. The cost for the year of such entertaining was $1,500, and about one-third of the cost was attribut- able to meals consumed by the president. Each year as the company closes its books, the controller and certain other members of the accounting staff must work overtime. The company pays each employee supper money totaling $25 during this period. The corporation's vice president is expected to travel on business-related matters to visit various properties owned by the corporation. Because of the distances involved, the vice president must stay away from home several nights. Total meals and lodging incurred on the trips total $3,000, most of which is attributable to the vice president himself. Which amounts are deductible by the corporation? Which are taxable to the employee?

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