In: Accounting
5.
The Sage Company has the opportunity to purchase a building located next to its office. Sage would use the building as a day care center for the children of its employees and an exercise facility for the employees. Occasionally, portions of the building could be used for employees' family events such as reunions, birthday parties, and anniversaries.
The company would like to know if the planned uses of the building would fit into a beneficially taxed employee compensation plan. Complete the statement below regarding this potential employee fringe benefit.
The planned use of the facility would result in income for the employees because child day care services and exercise facilities provided to the employees are specifically from employees' gross income.
plz answers this Q with the explanations
5.
The Sage Company has the opportunity to purchase a building located next to its office. Sage would use the building as a day care center for the children of its employees and an exercise facility for the employees.