Which of the Following Transactions Would Be Considered by the IRS

question 45

Multiple Choice

Which of the following transactions would be considered by the IRS to be a taxable sale of assets? Changing the form of business from:

• A)a corporation to an LLC.
• B)a partnership to an LLC.
• C)an LLC to a corporation.
• D)a sole proprietorship to an LLC

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Definitions:

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.

Labor

The human effort, both physical and mental, that is used to produce goods and services.

Consumer Spending

The total amount of money spent by households and individuals in an economy on goods and services, an important indicator of economic health.

Consumption Expenditures

The total amount of money spent by households and individuals on goods and services for personal use.