Which of the Following Actions Cannot Be Used to Eliminate

question 23

Multiple Choice

Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father?

• A)Sell additional stock to other family members.
• B)Make a cash distribution within 2 1/2 months of the end of the tax year.
• C)Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed.
• D)Liquidate the corporation.

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Definitions:

Leader's Term

The period during which an individual holds the leadership position in an organization or team.

New Leader

An individual who has recently assumed a leadership position, bringing fresh perspectives or approaches to the role.

Previous Leader

The individual who held a leadership position before the current leader, whose actions and decisions may still influence the team or organization.

Internal Attribution

The process of assigning the cause of behavior to personal aspects such as traits, abilities, or feelings.