In the bartender earnings scenario, what is the weekly value of the meal that is considered for earnings if the employee had to pay?

• A. $15
• B. $125
• C. $250
• D. $600

Answer: (B)

The concept being tested is imputed income from employer-provided meals. When an employee would have to pay for a meal, the value of that meal is treated as earnings—it's the fair market value of the benefit, not the employer’s cost or the employee’s usual wage.

In this bartender scenario, the meal value used for earnings is based on how much the meal would cost if the employee bought it on their own. If a meal is valued at about $25 and there are five meals in a week (one per shift), the weekly imputed value is $25 × 5 = $125. That’s why the weekly value considered for earnings is $125.

The other amounts don’t fit the scenario’s typical assumptions for meal value per week: they would imply higher or lower per-meal costs or a different number of meals per week than what’s assumed here.