Answer to Question #270469 in Accounting for Another you

Question

1. Miss Gina Galang is a teacher in Philippine Open University. During the year, she received 300,000 as salary and in addition is given free meals with a value of 50,000 and a dorm adjacent to the school with a value of 60,000. How much is the gross compensation income of the taxpayer?

2. Suppose the University assigned Ms. Galang to live in the school dormitory (with free meals and lodging) for the convenience of her employer. How much is the compensation income?

Answer 1

1. The gross compensation income of the taxpayer is 300,000.

2. The compensation income is:

$300,000 + 50,000 + 60,000 = 410,000.$