EMA received the following benefits from his employer this year. What amount must EMA include in his gross income?
Salary $175,000
Health insurance premiums 7,000
Monthly parking 1,440 for the entire year ($120/month)
Season tickets to the opera 2,000
Group of answer choices
$178,440
$185,440
$177,000
$175,000
Gross Income is the income associated with the main source of operations. For any employee the main income will be his Salary. That is the gross income.
While Season ticket to opera is a reward to the employee for his performance which is not recurring. Monthly parking and health insurance are not the main source of earnings for the employee. These all are other benefits of working with the employer. If the employee does not work he will not receive all those benefits.
Answer is $1,75,000
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