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:

Split-phase Motors

A type of single-phase induction motor that uses a secondary start winding or auxiliary winding offset by electrical degrees to create a phase shift, helping to start the motor.

Pulsating Magnetic Field

A magnetic field that varies in amplitude over time in a periodic manner.

Rotating

The action or process of turning around a center or an axis; a fundamental movement in various mechanical and electrical devices.

Fixed

Pertains to an electronic component or value that remains constant and unchanged throughout its operation or use.