Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) A shareholder owning 2% or more of an S corporation's stock, who is also an employee of the corporation, must include all statutory fringe benefits in gross income on his/her individual return.
B) Section 318 stock attribution rules are used to define 2% or more shareholders of S corporation's stock.
C) Fringe benefits limited by the more- than- 2%- shareholder rule include stock options, group term life insurance premiums, and medical insurance premiums.
D) All of the above are false.