Pomeroy Corporation has a company health-care plan for all employees.Albert,an employee,owns 15% of the stock.Philip,also an employee,owns 1% of the stock.The cost to the company of Albert's health plan is $3,000 and Philip's is $2,100.What amount of the health plan must Albert and Philip report as income?
$\begin{array}{lll}
& \text { Albert } & \text { Philip } \
\text { a. } & \$-0- & \$-0- \
\text { b. } & \$ 3,000 & \$ 2,100 \
\text { c. } & \$ 3,000 & \$-0- \
\text { d. } & \$-0- & \$ 2,100
\end{array}$

Question

Pomeroy Corporation has a company health-care plan for all employees.Albert,an employee,owns 15% of the stock.Philip,also an employee,owns 1% of the stock.The cost to the company of Albert's health plan is $3,000 and Philip's is $2,100.What amount of the health plan must Albert and Philip report as income?
$\begin{array}{lll} 
& \text { Albert } & \text { Philip } \
\text { a. } & \$-0- & \$-0- \
\text { b. } & \$ 3,000 & \$ 2,100 \
\text { c. } & \$ 3,000 & \$-0- \
\text { d. } & \$-0- & \$ 2,100
\end{array}$

Quizplus · Accepted Answer

The Answer of Pomeroy Corporation has a company health-care plan for all employees.Albert,an employee,owns 15% of the stock.Philip,also an employee,owns 1% of the stock.The cost to the company of Albert's health plan is $3,000 and Philip's is $2,100.What amount of the health plan must Albert and Philip report as income?
$\begin{array}{lll} 
& \text { Albert } & \text { Philip } \
\text { a. } & \$-0- & \$-0- \
\text { b. } & \$ 3,000 & \$ 2,100 \
\text { c. } & \$ 3,000 & \$-0- \
\text { d. } & \$-0- & \$ 2,100
\end{array}$

Pomeroy Corporation Has a Company Health-Care Plan for All Employees