a.

Section 119 excludes from income the value of meals provided to the employees when:

1. When the meals are provided by the employer.

2. When the meals are furnished on the employer's premises.

3 When the meals are furnished for the convenience of the employer.

		Only item 1 is a valid condition
		Only item 2 is a valid condition
		Only item 3 is a valid condition
		All 3 items must be satisfied for meals to be excluded from gross income

b.

On February 9, 2016, Harry sold stock with a cost of $12,000 to his sister Florine for $7,000, its fair market value. On July 30, 2021, Florine sold the same stock for $16,200 to a friend in a bona fide transaction. What is the proper treatment in 2021 for these transactions?

		Neither Harry nor Florine has a recognized gain or loss.
		Harry has a recognized loss of $5,000.
		Florine has a recognized gain of $4,200.
		Florine has a recognized gain of $9,200.