An individual taxpayer uses the cash method. Which of the following transactions results in gross income in 2020?    The taxpayer receives a dividend check on December 24, 2020 but does not cash the check until January 5, 2021.    The company mails a dividend check on December 30, 2020 but the taxpayer does not receive the check until January 3, 2021.    Wages earned in 2020 but not paid as of year-end   Stock awarded for services rendered but not vested for 2 years

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A:

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.