Adam repairs power lines for the Egret Utilities Company. He is generally working on a power line during the lunch hour. He must eat when and where he can and still get his work done. He usually purchases something at a convenience store and eats in his truck. Egret reimburses Adam for the cost of his meals. O a. Adam must include the reimbursement in his gross income. • b. Adam can exclude the reimbursement from his gross income as the meals are provided for the convenience of the employer. O c. Adam may exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home. • d. Adam can exclude the reimbursement from his gross income because he cats the meals on the employer's business premises (the truck).

The correct answer is: **a. Adam must include the reimbursement in his gross income.** Under U.S. tax law, meal reimbursements are generally considered taxable income unless they meet specific criteria for exclusion. For meals to be excluded from gross income as being for the convenience of the employer, they typically need to be provided on the employer's business premises and for a substantial non-compensatory reason related to the employer's business. In Adam's case, the meals are not provided on the employer's business premises, and the reimbursement is for meals purchased at a convenience store. Therefore, the reimbursement does not meet the criteria for exclusion and must be included in Adam's gross income.

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