Under Swan Company's Cafeteria Plan, All Full-Time Employees Are Allowed

question 69

Multiple Choice

Under Swan Company's cafeteria plan, all full-time employees are allowed to select any combination of the following benefits, but the total received by each employee cannot exceed $8,000 a year.
I.Group medical and hospitalization insurance for the employee, $3,600 a year.
II.Group medical and hospitalization insurance for the employee's spouse and children,
$1,200 a year.
III.Child care payments, actual cost but not more than $4,800 a year.IV.Cash required to bring the total of benefits and cash to $8,000.
Which of the following statements is true?

• A)Sam, a full-time employee, selects choices II and III and $2,000 cash.His gross income must include the $2,000.
• B)Paul, a full-time employee, elects to receive $8,000 cash because his wife's employer provides these same insurance benefits, which would cover him (II).Paul is not required to include the $8,000 in gross income.
• C)Sue, a full-time employee, elects to receive choices I, II, and $3,200 for III.Sue is required to include $3,200 in gross income.
• D)All of these.
• E)None of these.

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A brand name for Fluoxetine, a type of antidepressant medication belonging to the selective serotonin reuptake inhibitor (SSRI) class, used to treat depression and other mental health conditions.

Chlorpromazine

An antipsychotic medication used in the treatment of schizophrenia, bipolar disorder, and various psychotic disorders, by altering the effects of neurotransmitters in the brain.

Lithium

A medicinal element utilized to manage and prevent manic episodes in individuals with bipolar disorder.

Antipsychotic Drugs

Medications used to manage psychosis, including disorders like schizophrenia, by affecting brain neurotransmitter levels.