The Brooks Corporation,an S Corporation,has a Company Health-Care Plan for All

question 79

Multiple Choice

The Brooks Corporation,an S corporation,has a company health-care plan for all employees.Lars,an employee,owns 20% of the corporate stock.Dorothy,also an employee,owns 1%.The cost to the company of Lars' health plan is $2,800 and Dorothy's is $3,000.What amount of the health plan must Lars and Dorothy report as income?
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Lars Dorothy

• A)$-0- $-0-
• B)$-0- $200
• C)$2,800 $200
• D)$2,800 $-0-
• E)$2,800 $3,000

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Definitions:

Optimal

The best or most favorable point, level, or condition, especially under specific constraints or conditions.

Maximin Strategy

A decision rule which aims to maximize the minimum payoff attainable, often used under conditions of uncertainty.

Payoffs

The returns or benefits received from a particular action or investment.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal, given the strategies of other players, and no player has anything to gain by changing their own strategy alone.