Which of the following fringe benefits received by an employee would be excluded from the employees gross income? 1. Employer-provided parking. 2. Dues to an athletic club paid for by the employer. 3. Tickets to the basketball game tonight. 4. Employer-provided interior decorating for a new personal residence.

1 and 2

1 and 3

2 and 4

1, 3, and 4

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Question 210 pts

Short Company allows a 20% discount to all non-officer employees. Officers, all highly compensated, are allowed a 30% discount on company products. Shorts gross profit is 35%. Which of the following is true?

An officer who takes a 30% discount must include the extra 10% (30%-20%) in gross income.

All discounts taken by employees are includible because the plan is discriminatory.

All discounts taken by officers (30%) are includible because the plan is discriminatory.

None of the discounts are includible in income because the discount in all cases is less than the companys gross profit percentage.