S Corporation Shareholders Who Own More Than 2% of the Outstanding

question 136

Multiple Choice

S corporation shareholders who own more than 2% of the outstanding stock are eligible for which of the following tax-free benefits?

• A)group term life insurance exclusion under Sec.79 for premiums paid for up to $50,000 coverage
• B)exclusion for meals and lodging furnished for the convenience of the employer
• C)exclusion from income for premiums paid for accident and health and medical reimbursement plans
• D)None of the above.

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Definitions:

Free-Running Rhythm

Rhythm of the body’s own devising in the absence of all external cues.

Zeitgeber

Environmental event that entrains biological rhythms; German for “time giver.”

Entrained

The synchronization of an organism's circadian rhythms to that of an external rhythm in its environment.

Biological Rhythms

Natural cycles of physical, mental, and behavioral changes that follow a periodic, predictable pattern, such as circadian rhythms or menstrual cycles.