Josef is an employee of ACME Equipment Rentals and Repair. To ensure that Josef is available to respond to service calls, the company provides Josef with an Apple I-phone. Josef, on occasion, will also use the phone for personal calls and to watch the occasional TikTok video on his breaks. Is this a taxable or nontaxable fringe benefit to Josef?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Josef is an employee of ACME Equipment Rentals and Repair. To ensure that Josef is available to respond to service calls, the company provides Josef with an Apple I-phone. Josef, on occasion, will also use the phone for personal calls and to watch the occasional TikTok video on his breaks. Is this a taxable or nontaxable fringe benefit to Josef?
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