1. Which of the following allowances would have to be included in an employees Net Income For Tax Purposes?
   1. An allowance of $70 per day for food while traveling on the employers behalf.
   2. An allowance of $200 per day for lodging while traveling on the employers behalf.
   3. An allowance of $600 per month to compensate the employee for using his personal automobile for employment related activities.
   4. D. An allowance of $0.40 per kilometer to compensate an employee for using his personal automobile for employment related activities.

2. On April 1, 2019, Virgil van Delden receives a $100,000 loan from his employer for investment purposes. The loan requires that interest be paid at a rate of 1 percent. Assume that prescribed rates applicable to the last three quarters of 2019 are as follows: 2nd Quarter 4% , 3rd Quarter 3%, 4th Quarter 2%

What is the amount of the taxable benefit that will be assessed to Mr. van Delden as a result of having this loan?

1. $1,250
2. $1,500
3. $2,250
4. $3,000

3. Lily Zhao is a commission salesperson who is required to have an office in her personal residence. Which of the following home office related costs cannot be included in the amount that she deducts for this office?
   1. Interest on the mortgage.
   2. Maintenance costs.
   3. Property taxes.
   4. Fire insurance.