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:

Pleura

A thin membrane that surrounds the lungs and lines the interior wall of the chest cavity, providing lubrication and facilitating breathing.

Posterior/Dorsal

Referring to the back side of the body or an organ, opposite of anterior/ventral, important in anatomical positioning.

Popliteal

Pertaining to the area behind the knee where ligaments, vessels, and muscles are located.

Pleural Body Cavity

A fluid-filled space that surrounds the lungs, allowing them to expand and contract without friction, part of the thoracic cavity.