OK I appreciate all of the input. It makes slightly more sense to me to ground the secondary to chassis ground instead of tying it to the 120 VAC neutral. But really I don't see how it makes any real tangible difference one way or the other since the 120 VAC neutral is tied to ground at the supply.
And yes the 120 VAC with neutral is coming into the box from the nearest breaker panel.
And yes the 120 VAC with neutral is coming into the box from the nearest breaker panel.