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Rocky Racoon Corp. would like you to evaluate the tax consequences of its employee fringe benefits program for the company s president ( Mack )
Rocky Racoon Corp. would like you to evaluate the tax consequences of its employee fringe
benefits program for the companys president Mack who is also a majority shareholder tell
me how much is includible in gross income for Mack Explain your answers.
a The company has a storage facility for household goods. Officers are allowed a
discount on charges for storing their goods. All other employees are allowed a
discount. Macks discounts for the year totaled $
b The company owns a condominium in Gatlinburg, which is used to entertain customers.
Employees are allowed to use the condo without charge when the company has no
scheduled events. Mack used the facility days during the year. His use had a rental
value of $
c The company owns a parking lot that is used by customers, officers, and the general
public but primarily by the officers. Only the general public is required to pay for
parking. The charge to the general public for Macks parking for the year would have
been $$ monthly rate
d The company has a qualified retirement plan. The company pays the cost of officers
attending a retirement planning seminar. The officer must be within years of
retirement and the cost of the seminar is $ per attendee. Mack attends.
e Would your answer to c change if the parking lot is used by all employees, customers
and the general public?
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