Which of the Following Statements Is Incorrect Regarding Unfunded Deferred

question 74

Multiple Choice

Which of the following statements is incorrect regarding unfunded deferred compensation plans?

• A)The employee is not taxed on the compensation amount when it is deposited in an escrow account.
• B)An accrual-basis employer can deduct the compensation amount when it is accrued in the year of service.
• C)An employee is taxed when the amount is actually paid or made available.
• D)A 20% excise tax will apply if the employee can voluntarily elect to receive payment early.

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Definitions:

Economic Inequality

is the unequal distribution of income, wealth, or economic resources among individuals, groups, or communities within a society.

Ownership and Control

The legal rights to possess, use, and manage property or assets, and the power to oversee its functioning and usage.

Horizontal Integration

A strategy where a company acquires, merges with, or takes over another company in the same industry at the same stage of production.

Media Regulation

The control or guidance by governmental or independent bodies over various types of media content and distribution.