9. An employee can exclude from gross income the value of meals provided by his or her employer whenever:

a. The meal is not extravagant.

b. The meals are provided on the employers premises for the employers convenience.

c. There are no places to eat near the work location.

d. The meals are provided for the convenience of the employee.

e. None of these.

10. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tans cost was $9,000. The company also paid for Peggys parking space in a garage near the office.

The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other

employees parking fees. Peggys gross income from the above is:

a. $-0-.

b. $600.

c. $3,500.

d. $4,100.

e. None of these.

11. Which of the following is not a requirement for an alimony deduction?

a. The payments must be in cash.

b. The payments must cease upon the death of the payee.

c. The payments must extend over at least three years.

d. The payor and payee must not live in the same household at the time of the payments.

e. All of these are requirements for an alimony deduction.

12. The alimony recapture rules are intended to:

a. Assist former spouses in collecting alimony when the other spouse moves to another state.

b. Prevent tax deductions for property divisions.

c. Reduce the net cash outflow for the payor.

d. Distinguish child support payments from alimony.

e. None of these.