Which of the Following Does Not Limit the Benefits of Deferring

question 35

Multiple Choice

Which of the following does not limit the benefits of deferring income?

• A)Increasing tax rates
• B)A taxpayer with severe cash flow needs
• C)If continuing an investment would generate a low rate of return
• D)If continuing an investment would subject the taxpayer to unnecessary risk
• E)None of the choices are correct.

---

Definitions:

Paid-In Capital

Funds raised by a company through the sale of its own shares.

Dividends In Arrears

Dividends on preferred stock that have not been paid by the declaration date but are still owed to shareholders.

Non-Cumulative

Pertaining to preferred stock, which does not accumulate unpaid dividends if they are not declared.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.