For Each of the Examples Listed Below, State Which of the Following

question 9

Essay

For each of the examples listed below, state which of the following three categories of tax planning has been applied:
Shifting income from one time period to another Shifting income from one entity to another
Shifting income from one type of income to another.
A. Jack has run a successful proprietorship for the past four years, and has now decided to incorporate his company.
B. Karen has decided not to pay herself a dividend from her corporation, (of
which she is the sole shareholder), but has chosen to sell a portion of her shares to an associate instead.
C. XYZ Corporation has chosen to delay the recognition of a discretionary reserve until the following year.

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), representing the trade-off between different choices.

Environmental Groups

Organizations dedicated to advocating for and working towards the protection and improvement of the Earth's environment.

Unfair Trade Practices

Business methods considered unethical or illegal, which deceive, mislead, or harm consumers or competitors.

Trade Barriers

Measures imposed by governments to restrict international trade, typically to protect domestic industries, including tariffs, quotas, and regulations.