Which of the Following Is an Example of the Income

question 107

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:

Four-Post Design

A type of lift or rack in automotive repair shops or garages featuring four posts that provide stability and support for a vehicle during maintenance or inspections.

VIN Number

The Vehicle Identification Number, a unique code used to identify individual motor vehicles.

Country of Origin

The country where a product was manufactured or produced, often used in trading and customs for determining tariffs and indicating quality.

Manufacturer

A company that produces goods in large quantities.