Question
Does the taxpayer recognize gross income in the following situations? a. Ava is a filing clerk at a large insurance company. She is permitted to
Does the taxpayer recognize gross income in the following situations?
a. Ava is a filing clerk at a large insurance company. She is permitted to leave the premises
for her lunch, but she always eats in the company's cafeteria because doing so is
much less expensive than purchasing a comparable meal at a nearby restaurant. On
average, she pays $3 for a lunch that would cost $8 at a restaurant. However, if the
prices in the cafeteria were not so low and the food was not so delicious, she would
probably bring her lunch at a cost of $2 per day.
b. Scott is a resident adviser (RA) in a college dormitory and is provided with lodging
in the dormitory. He is not required to pay the $300 per month that a room costs
other students. In addition, he is paid $100 per month.
c. Ira recently moved to accept a job. For the first month on the new job, Ira was
searching for a home to purchase or rent. During this time, his employer permitted
Ira to live in an apartment the company maintains for customers during the buying
season. The month that Ira occupied the apartment was not during the buying season,
however, and the apartment would not otherwise have been occupied.
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