Identify Which of the Following Statements Is True

question 48

Multiple Choice

Identify which of the following statements is true.

• A) The built- in gains tax applicable to S corporations can be avoided if the property is held for ten years.
• B) An S corporation generally will not owe the built- in gains tax if the corporation has never been a C corporation.
• C) Beach Corporation, an S corporation, has gross receipts of $240,000; taxable income of $120,000; passive investment income of $100,000; and expenses directly attributable to the passive investment income of $20,000. The corporation's excess net passive income is $32,000.
• D) All of the above are true.

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Definitions:

Management Positions

Roles within an organization charged with the responsibility of executing strategies, leading teams, and managing resources to achieve objectives.

Succession Planning

The process of identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

Developmental Experiences

Learning opportunities that contribute to an individual's physical, cognitive, emotional, and social growth.

Leadership Talent

The inherent abilities and potential in individuals that enable them to guide, influence, or direct others effectively.