LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $277 per month.

Problem 12-47

Part a a.

If LaMont receives one pass (worth $277) each month, how much of this benefit must he include in his gross income each year?

Transit pass benefit to be included in gross income____?

b. If the company provides each employee with $277 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?

Parking benefit to be included in gross income____?