William is the manager of a motel. As a condition of his employment, he is required to live in a room on the premises so that he would be there in case of emergencies. William considered this a fringe benefit, since he would otherwise be required to pay $2000 per month rent. The room that William occupied normally rented for $100 per night, or occupied. As a result of this rent-free use of a room, William is required to inclue in gross income: