Courtney is an employee of fremont company an average of


Courtney is an employee of Fremont Company. An average of three times a week, she works out during her lunch hour at a health club provided by Fremont. Discuss the taxability of Fremont's provision of the health club in the following situations:

a. The health club is owned by Fremont and is located on its business premises. All employees and their dependents are allowed to use the facility. The cost of joining a comparable facility is $60 per month.

b. The health club is located in Fremont's office building but is owned by Manzer Fit- ness World. Fremont pays the $60 per month health club dues.

c. Fremont is in the health club business. The health club is used primarily by custom- ers, although several employees, including Courtney, use it, too.

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