Which One of the Following Allocations Is Most Likely to Meet

question 192

Multiple Choice

Which one of the following allocations is most likely to meet the "substantial" test in the "substantial economic effect" rules? (Assume all the "economic effect" tests are met.)

• A) The ROY LLC specially allocates $20,000 of income each year to partner Red with no offsetting loss allocations in other years.
• B) The YGB LLC specially allocates $30,000 of ordinary income this year to partner Green with an offsetting allocation of loss in that same amount next year.
• C) The BPV LLC specially allocates $10,000 of capital gains to Violet and $10,000 of interest income to Purple because Purple is in a lower tax bracket.
• D) The PIR LLC specially allocates $60,000 of income to Indigo with no offsetting allocations. Indigo has expiring net operating losses.
• E) None of the above items will ever meet the "substantial" test.

Understand and compute the financial responsibilities and benefits of enrollees in health plans, including premiums, deductibles, and co-payments.

Assess how changes in insurance coverage (e.g., removing dependents) impact overall premium costs.

Understand the structure and computation of health insurance premiums and employee contributions within a company plan.

Calculate the total cost of health insurance for a company based on employee participation and coverage levels.

---

Definitions:

Order Effects

The impact of the order in which treatments, tasks, or stimuli are presented on the participants' responses in an experiment.

Counterbalanced Crossover Designs

A research method where participants are exposed to multiple conditions in a specific sequence to control for the effects of the condition order on outcomes.

Internal Validity

The degree to which the results of a study can be attributed to the interventions or variables being tested, rather than external factors.

Order Effects

The impact that the sequence of presenting stimuli or conditions can have on participant responses in an experimental design.