The Brooks Corporation,an S corporation,has a company health-care plan for all employees.Lars,an employee,owns 20% of the corporate stock.Dorothy,also an employee,owns 1%.The cost to the company of Lars' health plan is $2,800 and Dorothy's is $3,000.What amount of the health plan must Lars and Dorothy report as income?
$\begin{array}{llll}
&\text { Lars } & {\text { Dorothy }} \
\text { a. } & \$-0- & \$ -0- \
\text { b. } & \$-0- & \$ 200 \
\text { c. } & \$ 2,800 & \$ 200 \
\text { d. } & \$ 2,800 & \$ -0- \
\text { e. } & \$ 2,800 & \$ 3,000
\end{array}$

Question

The Brooks Corporation,an S corporation,has a company health-care plan for all employees.Lars,an employee,owns 20% of the corporate stock.Dorothy,also an employee,owns 1%.The cost to the company of Lars' health plan is $2,800 and Dorothy's is $3,000.What amount of the health plan must Lars and Dorothy report as income?
$\begin{array}{llll}
&\text { Lars } & {\text { Dorothy }} \
\text { a. } & \$-0- & \$  -0- \
\text { b. } & \$-0- & \$  200 \
\text { c. } & \$ 2,800 & \$ 200 \
\text { d. } & \$ 2,800 & \$  -0- \
\text { e. } & \$ 2,800 & \$ 3,000
\end{array}$

Quizplus · Accepted Answer

The Answer of The Brooks Corporation,an S corporation,has a company health-care plan for all employees.Lars,an employee,owns 20% of the corporate stock.Dorothy,also an employee,owns 1%.The cost to the company of Lars' health plan is $2,800 and Dorothy's is $3,000.What amount of the health plan must Lars and Dorothy report as income?
$\begin{array}{llll}
&\text { Lars } & {\text { Dorothy }} \
\text { a. } & \$-0- & \$  -0- \
\text { b. } & \$-0- & \$  200 \
\text { c. } & \$ 2,800 & \$ 200 \
\text { d. } & \$ 2,800 & \$  -0- \
\text { e. } & \$ 2,800 & \$ 3,000
\end{array}$

The Brooks Corporation,an S Corporation,has a Company Health-Care Plan for All