Question

Discussion Question 9-8 (LO. 5) In each of the following situations, indicate whether the 50% reduction for meals applies. Yes / No a. Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica. b. The employer has a cafeteria for its employees, where meals are furnished at cost. The value of the meals are not included in the compensation of employees. c. The employer sponsors an annual Labor Day picnic for its employees. d. Every Christmas, the employer gives each employee a fruitcake. e. The taxpayer gives business gifts to her clients at Christmas.

Answer 1

Part a)

There's no sign concerning 50% decline for meals and recreation expenditure applies. The explanation is that the choice mentions concerning the reward to high sales individual Associate in nursing providing an all-expense funded tour to Jamaica.

Part b)

There's nothing declared concerning decrease in meals and recreation expenditures. Instead it mentions concerning restaurant wherever the meals are volume at value. Thus, the 50% decline for meals and recreation expenditure doesn't apply.

Part c)

Conjointly the main target is on legal holiday picnic and zilch concerning meals and recreation expenditures. Therefore, the 50% decline for meals and recreation expenditure doesn't apply.

Part d)

Emotions solely concerning fruitcake being assumed to workers by the leader on the eve of Christmas. Although, nothing is stated concerning meals and recreation expenditures. Thus, the 50% decline for meals and recreation expenditure doesn't apply.