Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• B)Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. Caleb Corporation is classified as a personal holding company.
• C)Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments for the professional employees. The professional fees earned by the corporation are personal holding company income.
• D)All of the above are false.

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Definitions:

Drug Overdose

Occurs when a person takes more than the recommended amount of a drug, leading to potentially fatal health consequences.

Gun Shot

The discharge of a firearm, which can result in a projectile being propelled at high velocity towards a target.

Drug Use

The consumption or administration of substances, which can range from prescription medications to illegal narcotics, for various purposes.

Inhalants

Substances breathed in through the nose or mouth to achieve a psychoactive, or mind-altering, effect.