Amber, a hotel manager, was required to accept free lodging in the hotel in connection with her obligations as the hotel manager. This lodging is valued at $5,000 for the year. In addition to this free lodging, the company paid Amber $20 in cash per night for dinner for a total of $4,800 for the year (for Amber’s convenience, not the hotel’s convenience). This meal allowance is not considered de minimis. What amount must Amber include in her gross income?

Amber, a hotel manager, was required to accept free lodging in the hotel in connection with her obligations as the hotel manager. This lodging is valued at $5,000 for the year. In addition to this free lodging, the company paid Amber $20 in cash per night for dinner for a total of $4,800 for the year (for Amber’s convenience, not the hotel’s convenience). This meal allowance is not considered de minimis. What amount must Amber include in her gross income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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