Matilda Works for a Company with 1,000 Employees

question 50

Multiple Choice

Matilda works for a company with 1,000 employees. The company has a hospitalization insurance plan that covers all employees. However, the employee must pay the first $3,000 of his or her medical expenses each year. Each year, the employer contributes $1,500 to each employee's health savings account (HSA) . Matilda's employer made the contributions in 2016 and 2017, and the account earned $100 interest in 2017. At the end of 2017, Matilda withdrew $3,100 from the account to pay the deductible portion of her medical expenses for the year and other medical expenses not covered by the hospitalization insurance policy. As a result, Matilda must include in her 2017 gross income:

• A)$0.
• B)$100.
• C)$1,600.
• D)$3,100.
• E)None of these.

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Definitions:

Product B

A term typically used in economics or marketing to refer to a specific item or service offered by a company, distinguished by its characteristics or its positioning.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Regular Hourly Rate

The fixed amount of money that an employee is paid for each hour of work.

Overtime

Working hours that exceed the standard work hours defined by labor laws or agreements.