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7. Which of the following allowances would have to be included in an employees Net Income For Tax Purposes? A. An allowance of $600 per

7. Which of the following allowances would have to be included in an employees Net Income For Tax Purposes?

A. An allowance of $600 per month to compensate the employee for using his personal automobile for employment related activities.
B. An allowance of $0.40 per kilometer to compensate an employee for using his personal automobile for employment related activities.
C. An allowance of $70 per day for food while traveling on the employers behalf.
D. An allowance of $120 per night for hotels while traveling on the employers behalf.

8. Which of the following is an advantage of being an employee as opposed to being self-employer (an independent contractor)?

A. The ability to receive more fringe benefits.
B. The ability to have more control over job duties.
C. The ability to deduct a wider range of expenses.
D. The ability to make an increased profit.

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