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?
$\begin{array}{lc}
\text { Albert } &\text { Philip } \
a.\$-0- &\$-0- \
b.\$ 3,000 & \$ 2,100 \
c.\$ 3,000 & \$-0- \
d.\$-0- & \$ 2,100
\end{array}$

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?
$\begin{array}{lc}
  \text { Albert } &\text { Philip } \
a.\$-0- &\$-0- \
b.\$ 3,000 & \$ 2,100 \
c.\$ 3,000 & \$-0- \
d.\$-0- & \$ 2,100
\end{array}$

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?
$\begin{array}{lc}
  \text { Albert } &\text { Philip } \
a.\$-0- &\$-0- \
b.\$ 3,000 & \$ 2,100 \
c.\$ 3,000 & \$-0- \
d.\$-0- & \$ 2,100
\end{array}$

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