Business, 18.03.2020 21:32 jazzy4211

Randy is the manager of a motel. As a condition of his employment, Randy is required to live in a room on the premises so that he would be there in case of emergencies. Randy considered this a fringe benefit since he would otherwise be required to pay $800 per month rent. The room that Randy occupied normally rented for $70 per night, or $2,100 per month. On the average, 90% of the motel rooms were occupied. As a result of this rent-free use of a room, Randy is required to include in gross income. a.$2,100 per month. b.$800 per month. c.$1,890 ($2,100 × 0.90). d.$-0-. e. None of these choices are correct.

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Randy is the manager of a motel. As a condition of his employment, Randy is required to live in a ro...

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