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2 March, 10:12

Tommy, a senior at State College, receives free room and board as full compensation for working as a resident adviser at the university dormitory. The regular housing contract is $2,000 a year in total, $1,200 for lodging, and $800 for meals in the dormitory. He had the option of receiving the meals or $800 in cash and accepted the meals. What must Tommy include in gross income from working as a resident adviser?

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  1. 2 March, 10:42
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    Consider the following explanation

    Explanation:

    The meals value of $800 should be included in Gross Income the reason being there was option of receiving the same in cash.

    The housing value and lodging value should not be included in gross income since it was give as condition of employment as full compensation for working as a resident adviser at the University dormitory.
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