Business, 18.09.2019 17:20 NotAPDB1441

This year ed celebrated his 25th year as an employee of designer jeans company. in recognition of his long and loyal service, the company awarded ed a gold watch worth $250 and a $2,000 cash bonus. what amount must ed include in his gross income?
a. $2,250b. $2,000c. $250d. zero if ed offers to contribute his watch and bonus to a qualified charitye. zero - all employee awards are excluded from gross income

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Answer from: fatherbamboo

The answer is A) $2,000

Explanation:

According to the IRS Publication 525 (2018), Taxable and Nontaxable Income

"If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. However, the amount you can exclude is limited to your employer's cost and can’t be more than $1,600 ($400 for awards that aren’t qualified plan awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that don’t create a significant likelihood of it being disguised pay."

Ed has to include the $2,000 he received as income but the $250 watch can be excluded.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

government control and resources

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