Test Bank Chapter 4 Fringe Benefits and Voluntary Deductions

Fringe benefits are given to employees in return for their service to the company.

Fringe benefits and employee satisfaction have no correlation.

Fringe benefits are part of an employee’s cash compensation package.

Premiums for insurance purchased through qualified cafeteria plans may be deducted from an employee’s pay on a pre-tax basis.

All employee contributions to qualified Premium-Only Plans (POP) and Flexible Spending Arrangements (FSA) are deducted on a pre-tax basis.

Specific fringe benefit exclusion rules are found in Publication 15.

The most common way to determine the value of fringe benefits is the general valuation rule.

Charitable contributions are an example of post-tax voluntary deductions.

Under the special accounting rule, benefits provided in the last quarter of the year may be reported during the following year.

Which of the following deductions may be taken on a pre-tax basis (Select all that apply)?

A. 

Cafeteria plan

B. 

Garnishments

C. 

Health insurance

D. 

Retirement plan

According to Bureau of Labor Statistics, what percentage additional compensation is offered in fringe benefits?

A. 

10-18%

B. 

15-23%

C. 

21-29%

D. 

25-33%

Which of the following is/are hallmarks of fringe benefits? (Select all that apply)

A. 

The benefit improves employees’ living conditions

B. 

The ability to receive the benefit relates directly to performance

C. 

All employees have access to the benefit

D. 

Employee welfare remains unaffected by the benefit

If a fringe benefit involves a deduction from employee pay, which of the following is true?

A. 

Employers may only offer the benefit to certain classes of employees.

B. 

The employee must enroll in direct deposit for their pay.

C. 

The fringe benefit must be subject to income tax.

D. 

The amount of the deduction must be listed on the employee’s pay advice.

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

A. 

Medical expenses

B. 

Tuition expenses

C. 

Meal expenses

D. 

Moving expenses

Health Savings Accounts may be used as pre-tax deductions for which type of costs (Select all that apply)?

A. 

Child medical expenses

B. 

Gasoline expenses

C. 

Long-term medical care expenses

D. 

Prescription expenses

Which of the following is an includible medical expense, according to Publication 502? (Select all that apply.)

A. 

Ambulance service

B. 

Over-the-counter medicines

C. 

Hearing aids

D. 

Braille books and magazines.

Contributions to FSAs in excess of what annual amount are treated as taxable income?

A. 

$1,600

B. 

$1,900

C. 

$2,300

D. 

$2,600

Which of the following must accompany a Health Savings Account (HSA) to be considered part of a cafeteria plan?

A. 

Long-term care insurance

B. 

High-deductible health plan

C. 

Low-deductible health plan

D. 

Flexible Savings Agreement

What differentiates Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)?

A. 

Amounts contributed to FSAs may not be rolled over from one year to the next.

B. 

HSAs expire on an annual basis but FSAs continue perpetually.

C. 

FSAs expire annually but HSAs may be reserved for use late in life.

D. 

Only HSAs may be deducted from employee on a pre-tax basis.

Which of the following is true about excluded fringe benefits? (Select all that apply.)

A. 

They must be part of the employer’s cafeteria plan.

B. 

The cash value of excluded fringe benefits is always taxable.

C. 

Excluded fringe benefits are not generally a taxable part of employee pay.

D. 

Excluded fringe benefits are generally not reported on the employee’s W-2.

According to Publication 15b, was is the annual cash value limit for excluded prizes and awards

A. 

$800

B. 

$1,400

C. 

$1,600

D. 

$2,000

Under what condition is the fringe benefit of a gym membership taxable?

A. 

When the employer has on-site facilities that are restricted to employee use.

B. 

When the employer offers membership to an off-site club at no additional cost to the employee.

C. 

When the employer has on-site facilities that are open to public use.

D. 

Gym memberships are always taxable.

Which of the following is true about the employee tax treatment of employer-provided snacks and meals?

A. 

Occasionally provided snacks and meals are not taxable.

B. 

Snacks and meals provided on a regular basis are not taxable.

C. 

Holiday parties and meals provided at special gatherings are always taxable.

D. 

Employer-provided kitchen facilities are taxable.

What method(s) may be used to determine the fair market value of the personal use of a company car? (Select all that apply.)

A. 

Appraised value rule

B. 

Commuting rule

C. 

Cents-per-mile rule

D. 

Replacement value rule

Under the lease-value rule, how is the taxable income for the employee determined? (Select all that apply.)

A. 

Use the annual lease value amount for the vehicle from Publication 15b.

B. 

Multiply the lease amount by the percent of business usage of the vehicle.

C. 

Subtract the dollar amount of the fuel used.

D. 

Multiple the lease amount by the percent of personal usage of the vehicle.

Michael McBride is an employee of Reach-it Pharmaceuticals. His company car is a 2017 Lexus GS 200t with a fair-market value of $50,000 and a lease value of $13,250, according to Publication 15-b. During the year, Michael drove 45,000 miles, of which 9,000 were for personal use. The car was available for use on 270 of the days during the year. All gasoline was provided by the employer and is charged back to Michael at $0.055 per mile. What is the amount of the company-car fringe benefit that will appear on Michael’s W-2, using the lease-value rule? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

$2,742.77

B. 

$2,455.27

C. 

$2,156.87

D. 

$1,960.27

Frances McNale is an employee who drives a 2017 Ford C-Max with a fair-market value of $29,500. The lease value is $7,750, according to Publication 15-b. If the car was available for 150 days during the year, what is the prorated annual lease percentage, using the lease-value rule? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

35.63%

B. 

39.82%

C. 

41.10%

D. 

42.39%

Luis Billiot is an employee of Plato Designs and drives a 2017 Toyota Camry as a company car. The fair-market value of the car is $25,499 and the lease value is $6,850, according to Publication 15-b. The car has been available for 300 days during the year and Luis has driven 5,500 of the 28,350 miles for personal use. He pays for his own fuel. What is the percentage of miles driven for personal use, using the lease-value rule? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

82.19%

B. 

14.50%

C. 

19.40%

D. 

17.64%

Luis Billiot is an employee of Plato Designs and drives a 2017 Toyota Camry as a company car. The fair-market value of the car is $25,499 and the lease value is $6,850, according to Publication 15-b. The car has been available for 300 days during the year and Luis has driven 5,500 of 28,350 miles for personal use. He pays for his own fuel. What is the amount of the company-car fringe benefit that will appear on Luis’s W-2, using the lease-value rule? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

$1,252.48

B. 

$1,092.27

C. 

$875.14

D. 

$546.13

Frances McNale is an employee who drives a 2017 Ford C-Max with a fair-market value of $29,500. The lease value is $7,750, according to Publication 15-b. The car was available for 150 days during the year, and she reported that 6,500 of the 27,850 miles were driven for personal purposes. The company pays for all fuel and is charged back to Frances at $0.055 per mile. What is the amount of the company-car fringe benefit that will appear on Frances’s W-2, using the lease-value rule? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

$1,100.84

B. 

$1,020.44

C. 

$743.34

D. 

$964.24

What is the primary difference between the lease-value rule and the commuter rule as they pertain to the valuation of a company car fringe benefit?

A. 

The lease-value rule must be used for IRS reporting

B. 

The commuter rule considers all mileage driven as personal

C. 

The lease-value rule is only for internal company use

D. 

The commuter rule forbids personal use of the company vehicle

Hattie Bowers is a government employee who is provided a car for commuting and other work-related purposes only. In the last calendar year, her commute is 8 miles each way and she worked 220 days. What is the amount of the company-car fringe benefit that will appear on her W-2? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

$2,140.00

B. 

$2,640.00

C. 

$4,680.00

D. 

$5,280.00

Tanesha works part-time for a governmental agency and is given a car for work-related and commute purposes. During the last calendar year, she worked 150 days and had a commute of 35 miles each direction. What is the amount of the company-car fringe benefit that will appear on her W-2? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

$15,750.00

B. 

$3,937.50

C. 

$7,875.00

D. 

$5,906.25

Ronald Ferrer is an employee who drives a 2017 Chevrolet Malibu as a company car. The fair-market value of the car is $23,175. He has been given the choice to have his fringe benefit reported on his W-2 either using the lease-value rule or the cents-per mile rule. According to Publication 15-b, the lease value is $6,350. He has driven 2,500 miles for personal use and 23,500 miles in total during the year. The car has been available for use on 250 days during the year. Ronald’s employer pays for all fuel. What method and valuation will yield the lowest fringe-benefit amount for Ronald? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

Lease-value, $1,337.50

B. 

Cents-per-mile, $1,337.50

C. 

Lease-value, $600.19

D. 

Cents-per-mile, $600.19

Lakiesha is an employee who drives a 2017 Buick Verano as a company car. The fair-market value of the car is $28,545. She has been given the choice to have her fringe benefit reported on her W-2 either using the lease-value rule or the cents-per mile rule. According to Publication 15-b, the lease value is $7,750. She has driven 4,500 miles for personal use and 31,250 miles in total during the year. The car has been available for use on 200 days during the year. Lakiesha’s employer pays for all fuel. What method and valuation will yield the lowest fringe-benefit amount for Lakiesha? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

Lease-value, $859.01

B. 

Cents-per-mile, $859.01

C. 

Lease value, $2,407.50

D. 

Cents-per-mile, $2,407.50

Which fringe benefit valuation rule(s) permit employees to use a company vehicle for personal purposes as a fringe benefit? (Select all that apply.)

A. 

Lease-value rule

B. 

Cents-per-mile rule

C. 

Commuter rule

D. 

Mileage reimbursement rule

Under the unsafe conditions rule: (Select all that apply)

A. 

An employee may use a company vehicle for a one-way commute

B. 

Employees may only use company cars if their normal travel mode is unsafe

C. 

Employees may leave work at any time..

D. 

Employees are charged $1.50 for the one-way commute.

Ross is a full-time employee in Provo, Utah, who earns $42,000 annually, paid semimonthly. His federal income tax is $155.00 and FICA tax is $144.88. What is the maximum amount that may be withheld from his pay for a child-support garnishment, assuming he is not in arrears? (Do not round interim calculations, only round final answer to two decimal points. Utah has a 5% flat tax.)

A. 

$365.28

B. 

$686.81

C. 

$584.45

D. 

$876.68

According to the Consumer Credit Protection Act, what is the maximum percentage of an employee's disposable earnings that may be withheld as part of a consumer credit garnishment?

A. 

25%

B. 

35%

C. 

50%

D. 

40%

What is the purpose of pre-tax deductions? (Select all that apply.)

A. 

To reduce the amount of tax revenue available

B. 

To reduce the financial burden on families

C. 

To reduce the financial burden on employers

D. 

To support proactive health care

According to the Affordable Health Care Act, employers with ____ or more employees are required to file an informational return with the IRS and a detailed summary to the employees.

A. 

10

B. 

50

C. 

100

D. 

150

Employer contributions to employee health insurance must be (Select all that apply)

A. 

Added to Federal taxable wages

B. 

Reported in Social Security wages

C. 

Reported in State taxable wages

D. 

Reported in Box 12, Code DD

What is true about long-term disability insurance? (Select all that apply.)

A. 

It is always included in taxable income.

B. 

It is subject to Social Security taxes

C. 

It is subject to Medicare taxes

D. 

It may be deducted on either a pre-or post-tax basis

Which of the following are post-tax deductions? (Select all that apply.)

A. 

Employee contributions to gym memberships

B. 

Employee contributions to 401(k) plans

C. 

Employee contributions to charitable organizations

D. 

Employee contributions to union dues

Under the Affordable Care Act, what are the rules for dependents to be covered under a parent’s health plan? (Select all that apply.)

A. 

The dependent must be under the age of 21

B. 

The parent must be an employee covered by a qualified cafeteria plan.

C. 

Dependents under the age of 26 are covered.

D. 

All employer-sponsored health plans qualify.

If an employer paid for its employees’ long-term care insurance premiums, who determines the effect on the employees’ gross pay?

A. 

The IRS

B. 

The state in which the business is located

C. 

The employee

D. 

The employer

What is the difference between a defined benefit and a defined contribution retirement plan?

A. 

Defined benefit plans allow employees to contribute a set amount toward their retirement plan while employed.

B. 

Defined contribution plans allow employees to determine a specific amount of money they wish to receive upon retirement.

C. 

Defined benefit plans allow employees to determine a specific amount of money they wish to receive upon retirement.

D. 

Defined benefit plans allow employees to set aside money on a tax-exempt basis.

Which of the following are examples of defined contribution plans? (Select all that apply.)

A. 

IRA

B. 

Pension

C. 

SIMPLE

D. 

403(b)

Which of the following is true about 401(k) retirement plans?

A. 

All 401(k) plans are cafeteria plans.

B. 

401(k) plans are exempt from all payroll taxes.

C. 

401(k) plans always reduce income tax liability.

D. 

401(k) plans are usually subject to FICA taxes.

What is the major limitation of a SIMPLE retirement plan?

A. 

It is limited to firms with 100 or fewer employees.

B. 

Employee contributions to the plan are limited.

C. 

SIMPLE plans are subject to all payroll taxes.

D. 

SIMPLE plan funds must be invested in stock market securities.

What differentiates 401(k) and a 403(b) retirement plans?

A. 

401(k) plans are limited to companies with more than 100 employees.

B. 

403(b) plans are subject to all payroll taxes.

C. 

401(k) plans may not be invested in stock-market funds.

D. 

403(b) plans are offered by non-profit employers.

Which of the following is an example of a post-tax mandated deduction? (Select all that apply.)

A.

Charitable contributions

B. 

Garnishments

C. 

Credit card liens

D. 

Tax liens

According to Consumer Credit Protection Act, what is a limit on the amount of a garnishment for consumer credit? (Select all that apply.)

A. 

It must be less than 50% of an employee’s gross earnings.

B. 

It may be 75% of the employee’s disposable income.

C. 

It must be a minimum of 10% of an employee’s annual salary.

D. 

It cannot exceed 25% of an employee’s disposable income.

What is a limit on garnishments for nontax liens?

A. 

It may not exceed 15% of an employee’s disposable income.

B. 

It may be up to 50% of an employee’s disposable income.

C. 

An additional 5% may be added for any lien payments in arrears.

D. 

It may not exceed 30 times the federal minimum wage.

What is the term for a tax-favorable IRA is set up by or for the employee, and the employer contributes the funds into the account?

A. 

IRA

B. 

SIMPLE

C. 

ESOP

D. 

SEP

In which type of retirement plan does the company offer employees the ability to earn company stock for the duration of their employment?

A. 

SEP

B. 

SIMPLE

C. 

ESOP

D. 

401(k)

By what date must the value of all noncash benefits be determined for the preceding year?

A. 

December 31

B. 

January 31

C. 

February 28

D. 

March 31

As a general rule, when should the employer deposit money associated with employee benefits?

A. 

When the employee demands the benefit.

B. 

When the benefit is made available.

C. 

Immediately upon receipt.

D. 

When other tax deposits are made.

The ________________ determines when benefit amounts should be withheld from employee pay.

A. 

employee

B. 

employer

C. 

IRS

D. 

State in which the business is conducted

Under the ____________________________, benefits offered only during the last two months of the year may be treated as paid during the following calendar year.

A. 

Special accounting rule

B. 

IRS Publication 15

C. 

ERISA

D. 

Benefits valuation rule

What options do employers have regarding taxable fringe benefits? (Select all that apply.)

A. 

Add it to the employee’s W-2 in one lump sum.

B. 

Add it to a single pay period and tax it at the 25% income tax rate.

C. 

Add the value of the fringe benefit to period pay and tax it at that time.

D. 

Add it as a line item for employees to remit individually.

The reporting of employee benefits occurs on the ___________ and the ____________. (Select all that apply.)

A. 

Form W-2

B. 

Payroll register

C. 

Total compensation report

D. 

Form W-4

The purpose of fringe benefits is to ______________________.

A. 

Reduce taxable compensation.

B. 

Entice employee engagement.

C. 

Avoid cash outlays for employee benefits.

D. 

Defer tax obligations.

Over ____________ of U.S. employees report that fringe benefits affect their choice of employers.

A. 

10%

B. 

25%

C. 

40%

D. 

50%

Post-Tax Deductions are amounts ____________________________________.

A. 

That are voluntarily chosen by the employee

B. 

That the employer chooses to withhold after assessing the employee’s tax liability

C. 

Includes both mandatory and voluntary deductions

D. 

Are only mandatory deductions like garnishments and union dues

________________ benefits are fringe benefits with minimal value.

A. 

Minimal

B. 

De minimis

C. 

De normal

D. 

Mandatory

Publication ______ is the employer’s guide to fringe benefits.

A. 

10-a

B. 

15-f

C. 

15-b

D. 

12-c

Employers benefit by offering POPs because they reduce _________________________.

A. 

Income tax liability.

B. 

Cash paid to employees.

C. 

FICA tax liability.

D. 

Employee turnover.

The IRS permits employees to rollover up to ___________ in their FSA at the employer’s discretion.

A. 

$100

B. 

$250

C. 

$500

D. 

$750

The cash value of _____________________ must be included as compensation on the employee’s W-2.

A. 

Occasional meals and snacks

B. 

Gift cards

C. 

On-site athletic facilities

D. 

Plaques and trophies

__________________________ is the price that a person would pay for an item in an arm’s length transaction.

A. 

General valuation

B. 

Manufacturer’s Suggested Retail Price

C. 

De Minimis

D. 

Fair Market Value

Fringe benefits are given to employees in return for their service to the company.

Fringe benefits and employee satisfaction have no correlation.

Fringe benefits are part of an employee’s cash compensation package.

Premiums for insurance purchased through qualified cafeteria plans may be deducted from an employee’s pay on a pre-tax basis.

All employee contributions to qualified Premium-Only Plans (POP) and Flexible Spending Arrangements (FSA) are deducted on a pre-tax basis.

Specific fringe benefit exclusion rules are found in Publication 15.

A firm has headquarters in Indiana, but has offices in California and Utah. For employee taxation purposes, it may choose which of those three states income tax laws it wishes to use.

The most common way to determine the value of fringe benefits is the general valuation rule.

Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.

Charitable contributions are an example of post-tax voluntary deductions.

Under the special accounting rule, benefits provided in the last quarter of the year may be reported during the following year.

Which of the following deductions may be taken on a pre-tax basis (Select all that apply)?

A. 

Cafeteria plan

B. 

Garnishments

C. 

Health insurance

D. 

Retirement plan

According to Bureau of Labor Statistics, what percentage additional compensation is offered in fringe benefits?

A. 

10-18%

B. 

15-23%

C. 

21-29%

D. 

25-33%

Which of the following may be included as part of an employee's Section 125 "cafeteria" plan?

A. 

Medical expenses

B. 

Tuition expenses

C. 

Meal expenses

D. 

Moving expenses

Health Savings Accounts may be used as pre-tax deductions for which type of costs (Select all that apply)?

A. 

Child medical expenses

B. 

Gasoline expenses

C. 

Long-term medical care expenses

D. 

Prescription expenses

Trish earned $1,734.90 during the most recent semimonthly pay period. She is married and has 3 withholding allowances and has no pre-tax deductions. Based on the following table, how much should be withheld from her gross pay for federal income tax?

Michael McBride is an employee of Reach-it Pharmaceuticals. His company car is a 2017 Lexus GS 200t with a fair-market value of $50,000 and a lease value of $13,250, according to Publication 15-b. During the year, Michael drove 45,000 miles, of which 9,000 were for personal use. The car was available for use on 270 of the days during the year. All gasoline was provided by the employer and is charged back to Michael at $0.055 per mile. What is the amount of the company-car fringe benefit that will appear on Michael’s W-2, using the lease-value rule? (Do not round interim calculations, only round final answer to two decimal points.)

A. 

$2,742.77

B. 

$2,455.27

C. 

$2,156.87

D. 

$1,960.27

Annual Lease Value

Days available for use

Totals days during the year

Prorated annual lease %

Prorated annual lease value

$13,250.00

270

365

0.739726

$9,801.37

% of personal use during year

Personal annual lease value

Fuel value

Total Personal use taxable income

20%

$1,960.27

$495.00

$2,455.27

Days available for use

Totals days during the year

Prorated annual lease %

150

365

41.10%

Personal miles driven

Total miles driven

% of personal use

5,500

28,350

19.40%

Annual Lease Value

Days available for use

Totals days during the year

Prorated annual lease %

Prorated annual lease value

% of personal use during year

Personal annual lease value

Fuel value

Total Personal use taxable income

$6,850.00

300

365

82.19%

$5,630.14

19.40%

$1,092.27

$0.00

$1,092.27

Annual Lease Value

Days available for use

Totals days during the year

Prorated annual lease %

Prorated annual lease value

% of personal use during year

Personal annual lease value

Fuel value

Total Personal use taxable income

$7,750.00

150

365

41.10%

$3,184.93

23.34%

$743.34

$357.50

$1,100.84

# miles driven for daily commute

# days worked during year

Total commuter miles/year

Value of fringe benefit

16

220

3520

$5,280.00

# miles driven for daily commute

# days worked during year

Total commuter miles/year

Value of fringe benefit

70

150

10500

$15,750.00

Annual Lease Value

Days available for use

Totals days during the year

Prorated annual lease %

Prorated annual lease value

% of personal use during year

Personal annual lease value

Fuel value

Total Personal use taxable income

$6,350.00

250

365

68.49%

$4,349.32

10.64%

$462.69

$137.50

$600.19

Personal miles driven

Cents per mile

Total Personal use taxable income

2,500

0.535

$1,337.50

Annual Lease Value

Days available for use

Totals days during the year

Prorated annual lease %

Prorated annual lease value

% of personal use during year

Personal annual lease value

Fuel value

Total Personal use taxable income

$7,750.00

200

365

54.79%

$4,246.58

14.40%

$611.51

$247.50

$859.01

Personal miles driven

Cents per mile

Total Personal use taxable income

4,500

0.535

$2,407.50

Ross is a full-time employee in Provo, Utah, who earns $42,000 annually, paid semimonthly. His federal income tax is $155.00. What is the maximum amount that may be withheld from his pay for a child-support garnishment, assuming he is not in arrears? (Do not round interim calculations, only round final answer to two decimal points. Utah has a 5% flat tax.)

A. 

$365.28

B. 

$686.81

C. 

$584.45

D. 

$876.68

Annual Salary

Period wage/salary

Federal income tax

State income tax

FICA tax

Disposable income

Maximum garnishment

$ 42,000.00

$ 1,750.00

$ 155.00

$ 87.50

$ 133.88

$ 1,373.63

$ 686.81

According to the Consumer Credit Protection Act, what is the maximum percentage of an employee's disposable earnings that may be withheld as part of a consumer credit garnishment?

A. 

25%

B. 

35%

C. 

50%

D. 

40%

`

Retirement fund contributions are generally subject to ____________________ and ______________ taxes.

A. 

Federal withholding; state withholding

B. 

Federal withholding; Social Security

C. 

Social Security; Medicare

D. 

Federal withholding; Medicare

State and Local Income Tax rates __________________________.

Post-Tax Deductions are amounts ____________________________________.

A. 

That are voluntarily chosen by the employee

B. 

That the employer chooses to withhold after assessing the employee’s tax liability

C. 

Includes both mandatory and voluntary deductions

D. 

Are only mandatory deductions like garnishments and union dues

Publication ______ is the employer’s guide to fringe benefits.

A. 

10-a

B. 

15-f

C. 

15-b

D. 

12-c

Employers benefit by offering POPs because they reduce _________________________.

A. 

Income tax liability.

B. 

Cash paid to employees.

C. 

FICA tax liability.

D. 

Employee turnover.

The IRS permits employees to rollover up to ___________ in their FSA at the employer’s discretion.

A. 

$100

B. 

$250

C. 

$500

D. 

$750

The cash value of _____________________ must be included as compensation on the employee’s W-2.

A. 

Occasional meals and snacks

B. 

Gift cards

C. 

On-site athletic facilities

D. 

Plaques and trophies

__________________________ is the price that a person would pay for an item in an arm’s length transaction.

A. 

General valuation

B. 

Manufacturer’s Suggested Retail Price

C. 

De Minimis

D. 

Fair Market Value