Identify Which of the Following Statements Is True

question 31

Multiple Choice

Identify which of the following statements is true.

• A)Under the check-the-box rules, an LLC with more than one member is taxed as a corporation unless it elects to be taxed as a partnership.
• B)The partnership's tax year closes with respect to a partner whose interest is transferred by gift.
• C)An LLC has been taxed as a partnership for five years. Under the check-the-box rules, the LLC makes a timely election in 2019 to be taxed as a C corporation. The election of C corporation status is permitted and results in the LLC's assets being transferred from a partnership to a C corporation under the federal income tax rules.
• D)All of the above are false.

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Definitions:

Fundamental Attribution Error

The tendency to attribute behaviors to a person’s internal qualities while underestimating situational influences.

Unemployed

The state of being without a paid job but available to work.

Illusory Correlation

A cognitive bias where a relationship is perceived between two variables even when no such relationship exists.

In-group Favoritism

The tendency for people to give preferential treatment and show more positive attitudes towards members of their own group over those of an out-group.