E is employed as a medical practitioner. Her employer pays her an allowance of $550 per week to cover the costs of any medical journals and articles she may want to purchase. Is the allowance a fringe benefit explain your opinion. What is the object of the otherwise deductible rule? Explain your answer. [Answer here]

b) How are the arms length conditions and the arms length profits determined under Subdiv 815-B and 815-C? Explain your answer.

long answer question