Which of the Following Is an Example of the Income-Shifting

question 95

Multiple Choice

Which of the following is an example of the income-shifting strategy?

• A)A corporation paying its shareholders a $20,000 dividend.
• B)A corporation paying its owner a $20,000 salary.
• C)A high tax rate taxpayer investing in tax-exempt municipal bonds.
• D)A cash-basis business delaying billing its customers until after year-end.
• E)None of the choices are correct.

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Definitions:

Sensory Adaptation

The process by which a person becomes less sensitive to a stimulus after prolonged exposure.

Signal Detector

A device or system designed to detect the presence of, or changes in, physical or other indicators, often used in the context of safety or communication systems.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference.