Which of the Following Statements Regarding Recapture Is True

question 2

Multiple Choice

Which of the following statements regarding recapture is true?

• A)Recapture only occurs when there is a positive balance in a class pool and that pool of assets is empty.
• B)Recapture may be deducted from business income.
• C)Recapture occurs when there is a positive balance in a class pool, even if there are assets remaining in that class pool.
• D)Recapture occurs when there is a negative balance in a class pool, even if there are assets remaining in that class pool.

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Definitions:

Discretionary

Refers to actions or decisions that are left to an individual's judgment or choice, without strict necessity or guidelines.

Health Care Benefits

Various types of medical support provided by employers, such as insurance coverage for treatments and medications.

Group Life Insurance

A life insurance policy under which a group of people, typically employees of a company, are insured under a single contract at reduced rates.

Flexible Benefits Plans

Employee benefit programs that allow individuals to choose from a range of benefit options to tailor their coverage to their specific needs and preferences.