Mitchell LLC is a manufacturing company based in Boulder, Colorado. Mitchell man
ID: 2756166 • Letter: M
Question
Mitchell LLC is a manufacturing company based in Boulder, Colorado. Mitchell manufactures car stereo equipment for high-end performance cars. Mitchell provides the following fringe benefits to employees: Mitchell made an agreement with the N-Shape athletic facility in the same building as Mitchell's offices. The monthly fee is generally $100, but is paid for by Mitchell for any employees who are interested. Mitchell allows employees to purchase equipment for themselves at a 40% discount, even though the cost of goods sold is 45%. Which of these employee fringe benefits will be taxable to employees?Explanation / Answer
(a) The monthly fees paid by the employer to avail athletic facility to any interested employee will be taxable because it will be used by employee as a personal benefit .