5. The Sage Company has the opportunity to purchase a building located next to its office. Sage would use the building as a day care center for the children of its employees and an exercise facility for the employees. Occasionally, portions of the building could be used for employees' family events such as reunions, birthday parties, and anniversaries. The company would like to know if the planned uses of the building would fit into a beneficially taxed employee compensation plan. Complete the statement below regarding this potential employee fringe benefit.- The planned use of the facility would result in income for the employees because child day care services and exercise facilities provided to the employees are specifically from employees' gross income. 6. Rex, age 55, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2019: Hospitalization insurance premiums for Rex and his dependents. The cost of the coverage for Rex is $2,900 per year, and the additional cost for his dependents is $3,800 per year. The plan has a $2,000 deductible, but his employer contributed $1,500 to Rex's Health Savings Account (HSA). Rex withdrew only $800 from the HSA, and the account earned $50 of interest during the year. Insurance premiums of $840 for salary continuation payments. Under the plan, Rex will receive his regular salary in the event he is unable to work due to illness. Rex collected $4,500 on the policy to replace lost wages while he was ill during the year. .Rex is a part-time student working on his bachelor's degree in engineering. His employer reimbursed his $5,200 tuition under a plan available to all full-time employees. For each of the following items, enter the amount to be included in Rex's gross income. If an amount is zero, enter "O". Amount Included a. Hospitalization insurance premiums for Rex and his dependents. + + b. Insurance premiums of $840 for salary continuation payments. c. The $4,500 Rex collected on the salary continuation policy to replace lost wages while he was ill during the year. + d. Tuition reimbursement under a plan available to all full-time employees