Problem
High-Tech Corp pays the cost of air fare, hotel, taxis, meals, and incidental expenses for Josephand Michael to fly from Cleveland, Ohio, to Palo Alto, California, so that Joseph can interview fora position as a software engineer with High-Tech. The total cost of the expense-paid trip is $3,000($1,500 for each). Michael, Joseph's spouse, is a lawyer, and he uses the time in Palo Alto to explore the local legal market and the potential for obtaining a lawyer position. Must Joseph, Michael, or both include the value of the expense-paid trip in their Gross Incomes? Would it makeany difference if Michael were a stay-at-home spouse with three young children?