1. Ryan, a lawyer, purchases shares of corporate stock for $20,000 in December of Year 1. At the end of Year 2, they are worth $17,000. He sells the shares in October of Year 3 for $13,000. Describe Ryan’s tax consequences with respect to the purchase and ownership of the shares under current law.

2. Conglomerate, Inc., has a cafeteria in its headquarters building that is open to all employees. The cafeteria charges low prices (substantially less than the FMV of the meals) in order to just break even in running the cafeteria. Must the employees include the difference between the FMV of the meals and the price paid for them? Assume that § 119 is not satisfied on the facts. See § 132(e)(2). What if the facility is an Executive Dining Room open only to Executives?

3. High-Tech Corp pays the cost of air fare, hotel, taxis, meals, and incidental expenses for Joseph and Michael to fly from Cleveland, Ohio, to Palo Alto, California, so that Joseph can interview for a position as a software engineer with High-Tech. The total cost of the expense-paid trip is $3,000 ($1,500 for each). Michael, Joseph’s spouse, is a lawyer, and he uses the time in Palo Alto to explore the local legal market and the potential for obtaining a lawyer position. Must Joseph, Michael, or both include the value of the expense-paid trip in their Gross Incomes? Would it make any difference if Michael were a stay-at-home spouse with three young children?