"t money education.com by accessing the Sti plan 1. be S6,50noh cafeteria plan. Full-time emplovees are permitted to select any ear or less ts listed below, but the total value received by each employee must Medical Trials Inc. has a nation of thc., nc. has a cafeteria plan. Full-time employees are permitt a 1. Group m medical and hospitalization insurance for employee only, $3 ,600 a year 51,200 addition and hospitalization insurance for employee's spouse and dependenis ospitalization insurance for employee's spouse and dependents, care payments, actual cost not to exceed $5,000. 4. Cas 5. Universal variable life insurance S1 h required to bring the total of benefits and cash to $6,500. $1,000 Which of the following statements is true? (All employees are full time are full time James chooses to receive $6,500 cash because his wife's employer provides medica a. benefits for hi Matt chooses 1, 2, 5, Randy chooses 1 an gross income. m. James has $2,900 of taxable income ($6,500-$3,600). and $700 cash. He must include $700 in taxable income. d 2 and $1,700 in child care. He must include the $1,700 irn b. c. d. Robin chooses 1 and 2 and $1,700 cash. Robin must include $1,700 in taxable income. b- 2 Which of the following circumstances suggest the use of a cafeteria plan? 1. A cafeteria plan is appropriate when the employee mix is comprised only of older employees with families who need maximum medical and life insurance benefits. 2. A cafeteria plan is appropriate when employers want to choose the benefit package 3. A cafeteria plan is appropriate when an employer seeks to maximize employee 4 A cafeteria plan is appropriate for a small employer who does not have much money to most suited to their employee's individual needs satisfaction with the benefit package, thereby maximizing the employer's benefit from its compensation expenditures spend on benefits. a. 3 only b 4only. c 1,2, and 4 with