In each of the following independent cases,

determine the amount to be included in gross income.

a$)$ Steve manages an apartment house throughout the

year. He is required by his employer to live in one of

the apartments, which is given to Steve rent$-$free.

Similar apartments were rented to tenants for $$6,000$

per year. Steve's salary as manager is $$12,000$ per

year.

b$)$ Alan manages an apartment house throughout the year.

He is making a cash$-$salary of $$20,000$ for the year. In

addition, his employer offered to give him another $$500$

each month in cash or to let him live rent$-$free in an

apartment. Choosing the latter, Alan received an

apartment that has a fair rental value of $$7,000$ per

year. $($This is not a cafeteria plan.$)$

c$)$ Debra is a part$-$time server in a local cafe. Her

income for the year consists of wages of $$6,500$ and

tips of $$3,200.$

d$)$ Watchman lived rent$-$free during the year in a house

owned by his employer on the employer's premises. The

rental value of the house was $$18,000$ for the year.

Although watchman lived in the house for the

convenience of the employer, he was not required to

live there and could have lived somewhere else.