Choose the Word or Phrase in [ ] Which Will

question 15

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When one gives a child an income-producing asset,one is [maximizing their deductions | income shifting].

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Definitions:

Future Cash Flows

Estimates of the amount of money that is expected to be generated or expended by a business in future periods from its operational activities.

Goodwill

A non-physical asset that is recognized when a company is purchased at a price higher than the cumulative fair value of its recognizable net assets.

Interim Dividend

A dividend payment made before a company's annual earnings are calculated and finalized.

Fair Value

An estimation of a security's worth on an open market.