Final answer:
The correct answer is D. His employer paid his monthly golf club membership. This would be included in Mark's gross income.
Step-by-step explanation:
The inclusion of Mark's monthly golf club membership in his gross income is rooted in the concept that employer payments for certain benefits, including Social Security, unemployment insurance, worker's compensation, and Medicare, are considered fringe benefits. These contributions are integral components of an employee's total compensation per hour, reflecting the comprehensive value of the employment relationship.
In the case of Mark's employer paying for his golf club membership, a distinctive scenario emerges where the employer is directly covering a personal expense on Mark's behalf. Unlike traditional fringe benefits that contribute to the employee's well-being or social security, the payment of a non-business-related expense such as a golf club membership constitutes a form of compensation that adds to Mark's overall income for tax purposes.
This situation underscores the principle that any form of remuneration, whether in the conventional sense of wages or through non-cash benefits, is deemed part of an individual's gross income. In essence, the employer's payment for Mark's personal expense is regarded as an extension of his compensation package, subject to taxation in alignment with established income tax regulations. Thus, it highlights the comprehensive nature of gross income, encompassing both monetary and non-monetary forms of compensation that contribute to an employee's total remuneration.