Questions and Problems 2-33 20. George works at the Springfield Nuclear Plant as a nuclear technician. The plant is LO 2.10 located 15 miles from the town of Springfield. George likes to take his lunch at the plant's cafeteria because he is required to be available for nuclear emergencies during his shift. Unsurprisingly, there are no other eating establishments located near the plant. George estimates the value of the meals he was provided during the current year as $1,300. He estimates the cost for him to have prepared those lunches for him- self as about $560. The cost of the meals to the power company was $470. How much income does George need to recognize from the meals? a. b. $560 C. d. $830 ($1,300 $470) e. None of the above 2 11 21. Interest from which of the following types of bonds is included in taxable income? a. State of California bond b. City of New Orleans bond c. Bond of the Commonwealth of Puerto Rico d. U.S. Treasury Bond e. All of the above are excluded from income 03z22. Alicia loses her job part way through 2017. Her employer pays her wages of $15,450 LO 2.12 up through her date of termination. After that, she received $3,400 of unemployment compensation from the state until she gets a new job for which she is paid wages of $3,000 through year end. Based on this information, Alicia's gross income for 2017 is: a. b. $3,000 C, $6,400 d. $18,450 e. $21,850 Which of the following is a fringe benefit excluded from income? a. A mechanic at Denise's employer, a car rental company, provides $1,000 of repair 23. Lo 2.13 b. Alfa-Bet, a high-tech corporation, pays for each employee's membership at the c, Quickchat Inc. gives each employee a $10 giftcard to the local coffee shop on d. Hedaya, a doctoral student at hvy University, receives a full uition waiver while services to Denise's personal car for free 24 Hour Biceps Gym closest to each Alfa-Bet office National Coffee Day serving as research assistant Gail's employer allows her to set aside $4,000 from her wages to cover the cost of LO 2.13 24. Which of the following will result in the recognition of gross income daycare for Gail's four-year old daughter. Gail's daycare costs are $4,300 for the of the sofa to the furniture store is $1,100 and the sofa normally sells for $1,700. $225 per month. Lawyer's Weekly, a trade magazine for attorneys. a. b. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $1,200. The cost c. Jayden's employer purchases her commuting pass for the subway at a cost of d. Havana is a lawyer. The law firm she works for pays for her subscription to e. None of the above will result in recognition of gross income. year