Choice "A" is correct. (Wages are subject to FICA) Since a car received as a productivity award would be considered a substitute for wages/salary, the fair market value of the car would be subject to FICA taxation.
Choices "c", "b", and "d" are incorrect, since the following forms of income would not be subject to taxation under FICA.
c. | Interest on municipal bonds |
b. | Capital gains |
d. | Dividends |
