Question

1) The IRS allows the exclusion of the value of meals from the employee’s gross income:

	A.	Whenever the employer pays for the meal and for the convenience of the employee.
	B.	When the meals are provided for the employee on the employer’s premises for the convenience of the employer.
	C.	When the meals are provided for the employee on the employer’s premises for the convenience of the employee.
	D.	When the meals are provided for the employee on the employer’s premises as a convenience to the employee.
	E.	Some other answer.

2) Which  of the following types of interest income are taxable for Federal income tax purposes?

	A.	Interest on life insurance proceeds that the beneficiary elected to receive in installments over a 10-year period.
	B.	some other answer.
	C.	Interest on Los Angles City School bonds.
	D.	Interest on the City of New Orleans bonds.
	E.	Interest on State of Kansas bonds.

Answer 1

IRS ATTEMPTS TO TIGHTEN RULES FOR BUSINESS MEAL EXCLUSIONS. ... INTERNAL REVENUE CODE SECTION 119 (CODE SECTION 119) ALLOWS EMPLOYEES TO EXCLUDE FROM INCOME THE VALUE OF ANY MEALS FURNISHED BY OR ON BEHALF OF THEIR EMPLOYER IF THE MEALS ARE FURNISHED ON THE EMPLOYER'S BUSINESS PREMISES FOR THE CONVENIENCE OF THE EMPLOYER

SO OPTION B IS CORRECT THAT

WHEN THE MEALS ARE PROVIDED FOR THE EMPLOYEE ON THE EMPLOYEE’S PREMISES FOR THE CONVENIENCE OF THE EMPLOYER

QUESTION 2

HIGHWAY BONDS OF THE STATE OF KANSAS, ISSUED BY THE SECRETARY OF TRANSPORTATION UNDER K.S.A. 68-2301, ET SEQ., INCOME OR INTEREST THEREFROM EXEMPT FROM ALL STATE TAXES

UNDER LOUISIANA LAW, THE BONDS ARE EXEMPT FROM ALL TAXATION FOR STATE, PARISH, MUNICIPAL, OR OTHER PURPOSES

SO OPTION C IS CORRECT THAT INTEREST ON LOS ANGLES CITY SCHOOL BONDS ARE TAXABLE