Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A)Beach Corporation, an S corporation, has gross receipts of $240,000; taxable income of $120,000; passive investment income of $100,000; and expenses directly attributable to the passive investment income of $20,000. The corporation's excess net passive income is $32,000.
• B)The built-in gains tax applicable to S corporations can be avoided if the property is held for ten years.
• C)An S corporation generally will not owe the built-in gains tax if the corporation has never been a C corporation.
• D)All of the above are true.

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Definitions:

Peripheral Nervous System

The section of the nervous system lying outside the brain and spinal cord, which includes nerves that connect the central nervous system to sensory organs, muscles, and glands.

Fetal Nerve Cell Transplants

A medical procedure that involves transplanting nerve cells from a fetus into the brain or spinal cord of a patient to treat neurological disorders.

Parkinson's Disease

A neurodegenerative disorder characterized by tremors, stiffness, slowness of movement, and balance problems, resulting from the loss of dopamine-producing brain cells.

Motor Control

The ability of the nervous system to coordinate the movements and actions of the muscles and limbs.