Question

Please help with:

2. At his birthday party, Eric Glatt's mother gives him a $50 check, his employer, Granite Corporation, gives him two tickets (with a fair market value of $100) to see the Chicago Cubs, and a co-worker gives him a t-shirt costing $10. How much, if any, of the value of Eric's birthday presents does he have to include in his gross income?

a. $160

b. $110

c. $100

d. $0
Incorrect.
This answer wrongly assumes that amounts received by an employee from an employer can be excluded from gross income.

Thanks!

Answer 1

Why 0 is incorrect??

Answer 2

I do not know. I figured " birthday presents " shouldn't be included in gross income. I thought it would be 0 also. Sorry, not much help here.

Answer 3

wait...I found something....A gift from an employer to an employee is considered compensation, and is generally included in gross income.
My guess would be $100 (C). Because you do not count the gift from the co-worker or the mom, just the employer.

Answer 4

Sorry I didn't see your answer, I closed the question by mistake.

Answer 5

I do not know for sure, but I think it is $ 100.

Answer 6

Thanks anyway, I will let you know... I am reviewing my last attempt...

Answer 7

But! Do you know tax?

Answer 8

not really....tax on what ?

Answer 9

I originally thought the answer would be D, but since it is not, I am going with C.

Answer 10

It calls Fundamental Income Tax...

Answer 11

I am not really that good at income tax

Answer 12

Lol! Ok.. Me neither. :)