Facts related to Omega Corporation Omega Corporation has two shareholders, John and Jeff. Each owns 50% of Omega Jeff is also an employee of Omega. John is not an employee of Omega Jeff buys office supplies for Omega Corporation and Omega Corporation reimburses Jeff for the cost. John pays Omega's real estate tax bill and does not receive reimbursement

1. Is Omega entitled to a tax deduction for the cost of office supplies? Yes or No

2. If no, how does Omega treat Jeff's purchase?

Does Jeff have income with respect to Omega's reimbursement? Yes or No