Exercise Three - 3 Subject: Employee Benefits John Nilson is an employee of a high end furniture store. During the current year, John receives a number of benefits from his employer. Describe the tax consequences for John that result from receiving each of the following benefits. A 35 percent discount on merchandise with a total value of $10,000. Reimbursement of $2,000 in tuition fees for a course in creative writing. Business clothing with a value of $8,500 to be worn during working hours. John's employer felt he needed a better image in dealing with clients.) A set of china on the occasion of John's wedding anniversary costing $450, including taxes. A private health care plan for John and his family. The employer pays an annual premium of $780 for this plan Exercise Three - 4 Subject: Planning Employee Benefits As part of her compensation package, Jill Tyler is offered the choice of: a dental plan for her family, an annual vacation trip for her family, or an annual birthday gift of season's tickets to the ballet for her and her spouse. The alternative benefits are each worth about $4,000 per year. Indicate which benefit would be best for Jill from a tax point of view and explain your conclusion