Question 36 (1 point) A corporation reimburses its highly paid employees' medical expenses up to $10,000 a year, and its other employees up to $5,000 a year. Which of the following statements is correct if the corporation's plan discriminates in favor of its highly paid employees? 1) The highly paid employees will be taxed on any amount they are reimbursed above $5,000, but no employee is taxed on reimbursements up to $5,000. 2) All employees will be taxed on the $10,000 of fringe benefits they receive. 3 The non-highly paid employees will be taxed on the $10,000 of fringe benefits they receive, but the highly paid employees will not be taxed on the $10,000. 4) None of the employees will be taxed on the $10,000 of fringe benefits they receive. 5) The corporation cannot provide health insurance coverage if its plan discriminates in favor of highly paid employees