Which one of the following statements concerning fringe benefits is CORRECT?

The value of fringe benefits is not included in gross income. The employer always determines the amount of the employees fringe benefits and includes this amount in Box 1 of Form W-2. Group-term life insurance, meals, and travel expenses are the only taxable fringe benefits. The value of fringe benefits must be included in income unless the benefits are specifically excluded by law or the employee pays fair market value for them.