In Order to Shift the Taxation of Dividend Income from a Parent

question 19

Multiple Choice

In order to shift the taxation of dividend income from a parent to a child

• A)the parent must direct the corporation to pay the dividend to the child.
• B)the parent must transfer ownership of the stock to the child.
• C)the parent can deposit the dividend in the child's bank account.
• D)all of the above will result in shifting the taxation to the child.

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Definitions:

mRNA

Messenger RNA, which carries genetic information from DNA to the ribosome, where it serves as a template for protein synthesis.

AUG Codon

The mRNA codon that signals the start of protein synthesis, typically coding for the amino acid methionine in eukaryotes and a modified methionine in prokaryotes.

Translation

The process by which the sequence of bases in mRNA is used to direct the sequential addition of amino acids, building polypeptide chains in protein synthesis.

Initiated

Refers to the beginning or activation of a process, such as the start of a chemical reaction or the initiation of protein synthesis.