Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• B)Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. Caleb Corporation is classified as a personal holding company.
• C)Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments for the professional employees. The professional fees earned by the corporation are personal holding company income.
• D)All of the above are false.

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Definitions:

Medical Necessity

The determination that the health care professional was acting according to standard practices in providing a particular procedure for an individual with a particular diagnosis. Also referred to as medically necessary.

National Correct Coding Initiative

The National Correct Coding Initiative (NCCI) is a Medicare initiative that prevents improper payment of services that should not be reported together according to standardized coding guidelines.

Symptom

A subjective sensation or departure from the norm as related by the patient.

Fowler's Position

A semi-upright sitting position used in medical settings to improve breathing and decrease pressure on the abdomen.