Turner LLC is a manufacturing company based in Boulder, Colorado. Turner manufactures car stereo equipment for high-end performance cars. Turner provides the following fringe benefits to employees: I. Turner made an agreement with the N-Shape athletic facility in the same building as Turners offices. The monthly fee is generally $100 but is paid for by Turner for any employees who are interested. II. Turner allows employees to purchase equipment for themselves at a 40% discount, even though the cost of goods sold is 45%. Which of these employee fringe benefits will be taxable to employees?

		I only.
		II only.
		Both I and II.
		Neither I nor II.