Identify Which of the Following Statements Is True

question 2

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) 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.
• C) The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• D) All of the above are false.

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Definitions:

Recreational Drugs

Substances taken for pleasure rather than for medical reasons, often with the potential for addiction or legal issues.

GABA Neurons

GABA neurons are nerve cells that produce gamma-aminobutyric acid (GABA), a neurotransmitter that plays a key role in inhibiting or reducing neuronal excitability throughout the nervous system.

Glial Cells

Non-neuronal cells in the central nervous system that support, protect, and nourish neurons, playing a crucial role in maintaining homeostasis and forming myelin.

Adrenal Hormones

Hormones that are produced by the adrenal glands and that are involved in emotion and stress.