Chapter 2, Problem 10MCQ

Which of the following will result in the recognition of gross income?

1. Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $ 4,300 for the year.
2. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $ 1,200. The cost of the sofa to the furniture store is $ 1,100 and the sofa normally sells for $ 1,700.
3. Jayden's employer purchases her commuting pass for the subway at a cost of $ 225 per month.
4. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys.
5. None of the above will result in recognition of gross income.