Identify Which of the Following Statements Is True

question 2

Multiple Choice

Identify which of the following statements is true.

• A)Fringe benefits limited by the more-than-2%-shareholder rule include stock options, group term life insurance premiums, and medical insurance premiums.
• B)A shareholder owning 2% or more of an S corporation's stock, who is also an employee of the corporation, must include all statutory fringe benefits in gross income on his/her individual return.
• C)Section 318 stock attribution rules are used to define 2% or more shareholders of S corporation's stock.
• D)All of the above are false.

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Definitions:

United States

A country located in North America, consisting of 50 states, and known for its large economy and diverse population.

Christmas Tree Shop

A retail store specializing in holiday decorations, particularly those related to Christmas.

Christmas Gifts

Items given to friends, family, and others as presents during the Christmas holiday season, often symbolizing affection and goodwill.

Time Utility

The economic value added to products or services by making them available at a convenient time for consumers when they are needed or wanted.