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:

Perceptual Constancy

The psychological phenomenon that allows us to perceive objects as unchanging despite changes in sensory input.

Interposition

A visual cue in which one object partially blocks another, suggesting depth perception.

Sensory Interaction

The principle that one sense can influence or interact with another; the interaction of the senses to enhance the perception of the world.

Moon Illusion

A perceptual phenomenon in which the Moon appears larger near the horizon than it does higher up in the sky.