Matilda Works for a Company with 1,000 Employees

question 86

Multiple Choice

Matilda works for a company with 1,000 employees.The company has a hospitalization insurance plan that covers all employees.However, the employee must pay the first $3,000 of his or her medical expenses each year.Each year, the employer contributes $1,500 to each employee's health savings account (HSA) .Matilda's employer made the contributions in 2011 and 2012, and the account earned $100 interest in 2012.At the end of 2012, Matilda withdrew $3,100 from the account to pay the deductible portion of her medical expenses for the year and other medical expenses not covered by the hospitalization insurance policy.As a result, Matilda must include in her 2012 gross income:

• A)$0.
• B)$100.
• C)$1,600.
• D)$3,100.
• E)None of the above.

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Definitions:

Sales Peak

The highest point or period of maximum sales for a product or service, often influenced by factors such as seasonality, marketing efforts, or consumer trends.

Product Life Cycle

An idea that outlines the various phases a product experiences, from its initial launch, through its development and peak, to its eventual decrease in popularity in the marketplace.

Profits Decline

A decrease in the net earnings of a company over a specific period compared to previous periods, often reflecting challenges in operations or sales.

Competition

The rivalry among businesses to capture sales, market share, and customer loyalty in a particular market or industry.