Fringe Benefits for a 15 Percent Owner/employee Generally Are Deductible

question 25

Multiple Choice

Fringe benefits for a 15 percent owner/employee generally are deductible by the employer but are excludable income for the employee when the employer is a

• A)Proprietorship, partnership, or S or C corporation
• B)Partnership or S or C corporation
• C)S or C corporation
• D)C corporation

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Definitions:

Edema

Swelling caused by excess fluid trapped in the body's tissues.

Osmotic Balance

The regulation of water and solute concentrations across membranes to stabilize internal conditions of an organism or cell.

Inflammation

The reaction of the body to harm or disease, marked by inflammation, heat, enlargement, and discomfort.

Coagulation

The process by which blood changes from a liquid to a gel, forming a clot, which is crucial for stopping bleeding.