Question

Robin, a senior at State University, receives free room and board as full compensation for working as a resident advisor at the university dormitory. The regular housing contract is $1,400 a year in total, $800 for lodging and $600 for meals in the dormitory. Robin had the option of receiving the meals or $600 in cash. Robin accepted the meals. What is Robin’s gross income from working as a resident advisor?a.$0, the entire value of the contract is excluded from gross income.b.$600, the meal contract must be included in gross income.c.$800, the lodging contract must be included in gross income.d.$1,400, the entire value of the contract is compensation.e.None of the above.

Answer 1

$600, the meal contract have to be included in gross income

Step-by-step explanation:

Since Robin had the option to receive meals or the cash, the meals were not provided for the employer's convenience and therefore the meal's value should be included in gross income