Mauve Company permits employees to occasionally use the copying machine for personal purposes. The copying machine is located in the office where the higher paid executives work, so they occasionally use the machine. However, the machine is not convenient for use by the lower paid warehouse employees and, thus, they never use the copier. The use of the copy machine may not be excluded from gross
income because the benefit is discriminatory.
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The benefit is "de minimis," which means the cost of accounting for the benefit is great in relation to the benefit conferred; thus, the anti-discrimination rules do not apply.
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What will be an ideal response?
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