S Corporation Fringe Benefits. Copper Corporation formed two years ago and immediately elected S…

S Strengthening Fringe Benefits. Copper Strengthening formed two years ago and directly elected S strengthening foothold. In the ordinary year, the strengthening pays the aftercited insurance premiums for its employees:

a. What tax consequences termination from Copper's liquidation of the insurance premiums?

b. What are the tax consequences to the shareholder -employees and to the employees who are nor shareholders?