7. Which of the following situations would create an inclusion in an employee’s gross income? (a) Kay is the director and manager of Holiday Hotel. As a condition of her employment, Kay is required to live at the hotel. The value of this is $1,000 per month. Page 2 of 12 (b) Natalie is a secretary at JKL Law Firm. JKL provides her with free soft drinks. Natalie estimates that she drinks $20 worth of soft drinks per month. (c) Brian is an airline pilot with We Don’t Crash Airlines, Inc. and is allowed to fly, as a passenger, for free on the airline whenever an open seat is available. (d) Eric moved from Houston to New Orleans. His expenses for the move included $400 of truck rental costs, $100 of lodging and $200 of pre-move house hunting expenses. Eric’s employer reimbursed him $600.