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Business, 25.02.2020 00:57 tryintopassenioryear

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 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. $0
b. $800 per month.
c. $2,100 per month.
d. $1,890 ($2,100 x .90)

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