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Question - Drew is a night clerk at a hotel. In addition to his salary, he receives one meal per day and lodging. The daily meals, worth $1,000 per year, are provided so that Drew does not have to leave the desk. The lodging is in an unused room, with a value of $1,725 per year. Drew is required to be on duty only during the night shift. The lodging is not for the convenience of his employer and is not required as a condition of employment. However, he does sleep there when he is off-duty. What amount of these fringe benefits must Drew include in gross income?
A. $2,725
B. $0
C. $1,000
D. $1,725
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