Identify Which of the Following Statements Is True

question 65

Multiple Choice

Identify which of the following statements is true.

• A) The partnership's tax year closes with respect to a partner whose interest is transferred by gift.
• B) An LLC has been taxed as a partnership for five years. Under the check- the- box rules, the LLC makes a timely election in 2009 to be taxed as a C corporation. The election of C corporation status is permitted and results in the LLC's assets being transferred from a partnership to a C corporation under the federal income tax rules.
• C) Under the check- the- box rules, an LLC with more than one member is taxed as a corporation unless it elects to be taxed as a partnership.
• D) All of the above are false.

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Definitions:

Collaboration

The process of two or more people or organizations working together to complete a task or achieve a common goal.

Coherence

The quality of being logical and consistent, ensuring that every part of a piece of writing or speech is connected in a clear and orderly manner.

Reception

The act or process of receiving guests or goods.

Passive-voice Verbs

Verbs that are used to construct sentences where the subject is the recipient of the action, rather than performing the action itself.