Pastor in church provided parsonage

by Richard Barrier
(Mt Pleasant NC)

The pastor lives in a church provided parsonage. The church pays for the utilities (not transferred to the pastor's name).

Let's say the pastor is paid one paycheck at the end of the year. He is paid $60,000 ($5,000/month). The council has designated a parsonage allowance of $12,000 for him to cover furnishings and other authorized expenses.

What is the value reported on the W-2, box 1 and box 14?
- I understand that box 14 = $12,000
- What is box 1? $60,000 or $48,000

Since the church pays the utilities, is the total paid added to box 1?

Whose responsibility is it to determine the FRV of the parsonage? Pastor, church, both?