Final answer:
Employee discounts on services are not considered taxable imputed income if they do not exceed 20% of the price to non-employee customers. The option provided suggests a 25% employee discount, which would not be taxable as long as it does not surpass the 20% limit.
Step-by-step explanation:
The types of imputed income that are not included in the gross income and are not taxable to the person receiving the benefit are notably employee discounts on services and goods. However, there are limitations on these exemptions. An employee discount on services is not taxable provided that it does not exceed 20% of the price that non-employee customers pay for the service. In the case of the question, the employee discount of 25% on services would not be considered imputed income and thus would be excluded from gross income and not taxable, as long as the discount provided to the employee does not exceed the 20% threshold. If the employee receives a discount that is more than this threshold, the amount over 20% should be included in the employee's gross income. Therefore, option (c) would generally not be taxable. Since none of the provided material directly answers the question, the student must be aware of the general rules regarding employee benefits taxation.