Problem:

Thomas, who works for a moving company, received wages of $35,000 in 2014. The moving company allows its employees to move personal items on its truck when there is room as long as the items do not exceed a set weight limit such that there is no additional cost for adding the employee's personal items. During 2014, Thomas took advantage of this benefit to move some furniture to his sister's home on the other side of the city. The moving company would have charged $1,250. Thomas also attended the company's annual holiday party. The per employee fair market value of the party (food and drinks) would have been $55 but there was no charge to employees. Thomas is also the leader of his son's Boy Scout troop and used the company copier during the year. The annual value of the copies he made is $15.

Required:

What amount should Thomas include in his gross income from these items?

• $35,000
• $36,305
• $36,250
• $36,320

Note: Please provide reasons to support your answer.