Adam repairs power lines for the Egret Utilities Company. He is generally working on a power line during the lunch hour. He must eat when and where he can and still get his work done. He usually purchases something at a convenience store and eats in his truck. Egret reimburses Adam for the cost of his meals.

Adam must include the reimbursement in his gross income.

Adam can exclude the reimbursement from his gross income since the meals are provided for the convenience of the employer.

Adam can exclude the reimbursement from his gross income because he eats the meals on the employers business premises (the truck).

Adam may exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home.