a. 6.51 Employee Fringe Benefits, For each of the following independent situations, in- dicate whether the fringe benefit the employee receives is taxable or nontaxable. Explain your answer. C is a ticket agent for North Central Airways. The airline has a nondiscrimina- tory policy that allows its employees to fly without charge on a standby basis only. The last week in July, C took a vacation and flew from Kansas City to San Francisco. The value of the round-trip ticket was $400. b. Assume that C [in part (a) above] also stayed, without charge, for the entire week at a hotel in San Francisco that North Central Airways owns. The value of a week's stay in the hotel was $2,000. Assume in part (a) above that C was unable to obtain an empty seat on North Central the last week in July. Consequently, utilizing the qualified reciprocal arrangement that North Central has with South Shore Airlines, C flew free to San Francisco on South Shore. The value of the round-trip ticket was $400. d. Mis a sales clerk for J-mart department store. The store has a nondiscrimina- tory policy whereby its employees may purchase inventory items at a discount. In June, M purchased a microwave oven for $250 that J-mart sells to its cus- tomers for $300. J-mart's gross profit rate is 20 percent. c. f. Fis a CPA and works for a public accounting firm. On F's behalf, the firm paid $375 in subscription fees for three professional accounting journals. Officers of the XYZ Corporation are provided free parking space in a public parking garage located across the street from the firm's office building. The monthly cost of the parking space to XYZ is $300 for each officer