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

question 5

Essay

For each of the examples listed below, state which of the following three categories of tax planning h 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 incorporat company.
B. Karen has decided not to pay herself a dividend from her corporation, (of which she is the sole sha 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 followin

---

Definitions:

Corporate Purchase

A transaction involving the acquisition of assets or stock of a company by another corporation.

Ordinary Holder

An entity or individual that possesses a negotiable instrument but does not necessarily have the rights of a holder in due course.

Rights

Entitlements or privileges granted to individuals, which are protected by law or social convention.

Assets

Economic resources or valuable items that are owned by an individual or business and are expected to provide future benefits.