Determine the (1) deductible employer amount, and (2) taxable employee amount for each of the following employer-provided benefits.

a. Kay and several of her fellow employees grew tired of driving to and from work. This year they decided to get together and buy a luxury van. Their employer is willing to help pay the cost.

1. Deductible Employer Amount:

2. What is the per month exclusion for the employees?

b. The employer has a small room that contains a refrigerator, a microwave, a beverage machine, and a table where a few employees can eat. Each day the employer puts out donuts and coffee for the employees at a cost of about $3,000 per year.

1. Deductible employer amount of the cost of the meal through 2025: ___%

2. Taxable Employee Amount: