The following is a tax benefit associated with fringe benefits: A. Because they

ID: 2589890 • Letter: T

Question

The following is a tax benefit associated with fringe benefits:

A. Because they are forms of non-cash compensation they are not taxable as income even without a statutory exclusion.

B. The value of the benefit is excludable from the income of the employee pursuant to a statutory exclusion.

C. The value of the benefit is deductible by the employer, although not included in the taxable income of the employee.

D. All of the above.

A. Because they are forms of non-cash compensation they are not taxable as income even without a statutory exclusion.

B. The value of the benefit is excludable from the income of the employee pursuant to a statutory exclusion.

C. The value of the benefit is deductible by the employer, although not included in the taxable income of the employee.

D. All of the above.

The value of the benefit is excludable from the income of the employee pursuant to a statutory exclusion. Option B is correct

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