Thank you in advance

Q1

Which of the following correctly describes the tax treatment of health and accident insurance premiums paid by an S corporation and purchased in the S corporation's name on behalf of more-than-2% shareholders?

The health and accident insurance premiums are:

Deducted as wages on Form 1120-S, page 1, and included on the shareholder's Form W-2, box 1.

Reported as a separately-stated item on Form 1120-S, Schedule K, and passed through to shareholders on Schedule K-1 (Form 1120-S).

Deducted as an employee benefit program on Form 1120-S, page 1, and passed through to shareholders in the form of a reduced share of ordinary business income.

Not reported on Form 1120-S, but are eligible for the self-employed health insurance deduction on the individual shareholders' Forms 1040.

q2

Elaine and Andy are each 40% partners in the XYZ Partnership. On May 1, 2022, Elaine sold her interest to Tommy, who was already a 20% partner. On May 15, 2022, Andy sold his interest to Jenna. When does the partnership terminate for tax purposes?

May 1, 2022.

May 15, 2022.

December 31, 2022.

The partnership does not terminate, not sure this option

Thank you