Which of the following will result in the recognition of gross income? a.Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys. b.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. c.Jayden's employer purchases her commuting pass for the subway at a cost of $325 per month. d.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. e.None of these choices will result in recognition of gross income.

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 10MCQ: Which of the following will result in the recognition of gross income? Gail's employer allows her to...
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Which of the following will result in the recognition of gross income?

a.Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys.
b.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.
c.Jayden's employer purchases her commuting pass for the subway at a cost of $325 per month.
d.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.
e.None of these choices will result in recognition of gross income. 
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