Which of the Following Is Not an Example of a Nontaxable

question 30

Multiple Choice

Which of the following is not an example of a nontaxable fringe benefit?

• A)Monthly employer provided transit benefit of $100.
• B)Group-term life insurance policy providing $100,000 of coverage.
• C)Employer provided parking of $100 per month.
• D)Qualified employee discounts.Only $50,000 of group-term life insurance qualifies as a nontaxable fringe benefit.

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Definitions:

No-Par Stock

Shares issued without a specified face value, allowing companies flexibility in setting share prices and accounting for equity.

Stated Value

A value assigned to a company's shares that does not have a par value; often used in accounting for preferred stock.

Common Stock Account

An equity account that represents the ownership interest of the shareholders in a company.

Common Stock Dividend Distributable

The amount of dividends declared by a company but not yet paid to common stockholders.