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Business, 20.10.2021 07:50 bnvghnbbb

Gonzo Company is an accrual basis taxpayer. It provides medical insurance for its employees through a self-insured reimbursement plan. Gonzo pays $150 per month per employee into the plan fund. The fund is then used to reimburse employees' medical expenses. During the current year, Gonzo pays $90,000 into the fund and pays medical reimbursement claims totaling $78,300. Refer Economic Performance Tests to answer the following question. How much can Gonzo deduct for the provision of employee medical coverage

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