Fringe benefits limited by the more-than-2-shareholder rule


Identify which of the following statements is true.

a) Fringe benefits limited by the more-than-2%-shareholder rule include stock options, group term life insurance premiums, and medical insurance premiums.

b) 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.

c) Section 318 stock attribution rules are used to define 2% or more shareholders of S corporation's stock.

d) All of the above are false.

Please explain answer.

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Financial Accounting: Fringe benefits limited by the more-than-2-shareholder rule
Reference No:- TGS01594772

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