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Buford is a manager with the Beauty Supply Company. His fringe benefits for the current year include the following: 20% discount on store items available
Buford is a manager with the Beauty Supply Company. His fringe benefits for the current year include the following: 20% discount on store items available to all employees (gross profit percentage is 20%) $465 Free parking provided only to management employees 235 Personal letters occasionally typed by secretary 50 Personal use of company condominium for 1 weekend 200 Membership in a local health club 370 Employer-provided van pool for commuting 100 The above amounts represent the fair market values of the fringe benefits for 1 year. How much is included in Buford's gross income in the current year? A. $670 B. $570 O C. $620 D. $855 Group life insurance premiums paid by the employer covering the lives of employees who designate their own beneficiaries are not deductible O A. True. B. False
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