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

question 9

Multiple Choice

S corporation shareholders who own more than 2% of the outstanding stock are eligible for 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:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Capital Stock Per Worker

A measure of the amount of capital available per employee in a company or economy, indicating the level of investment in tools, buildings, and equipment each worker has to work with.

Output Per Worker

The average production or output produced per unit of labor, often used as a measure of labor productivity.

GDP Devoted To Investment

The portion of the Gross Domestic Product that is spent on investments in capital goods, infrastructure, and other activities to promote economic growth.