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This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $250 and a $2,000 cash bonus. What
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This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $250 and a $2,000 cash bonus. What amount must Ed include in his gross income

User Riko
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Answer:

Both of these must be included in the gross income.

Step-by-step explanation:

The reason is that the employee income that is taxable includes all the benefits in monetary amount and benefits in kind. These benefits are paid to employee as a share of salary to manage his motivation. These incomes must be included in the gross income to calculate his gross income.

User Kinjeiro
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