Chapter 2, Problem 8MCQ

George works at the Springfield Nuclear Plant as a nuclear technician. The plant is located 15 miles from the town of Springfield. George likes to eat his lunch at the plant's cafeteria because he is required to be available for nuclear emergencies during his shift. Unsurprisingly, there are no other eating establishments located near the plant. George estimates the value of the meals he was provided during the current year as $ 1,300. He estimates the cost for him to have prepared those lunches for himself as about $ 560. The cost of the meals to the power company was $ 470. How much income does George need to recognize from the meals?

1. $ 1,300
2. $ 560
3. $ 470
4. $830 ($1,300-$470)
5. None of the above