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:

Rectus Muscle

Any of several straight muscles, particularly those found in the abdomen and the eyes.

Superior Tarsus

A structure in the eyelid, a stiff plate of connective tissue that gives the eyelid its shape and support.

Thenar

Refers to the fleshy mass on the palm of the hand at the base of the thumb, consisting of muscles involved in thumb movements.

Perineum Muscle

The perineum muscle refers to the muscles located in the perineal region, between the anus and the genitals, important for supporting pelvic floor structures.