Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• B)Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. Caleb Corporation is classified as a personal holding company.
• C)Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments for the professional employees. The professional fees earned by the corporation are personal holding company income.
• D)All of the above are false.

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Definitions:

Rope

A length of strong cord made by twisting or braiding together strands of natural fibers, synthetic fibers, or wire.

Kanban Signals

Visual or electronic cues used in lean manufacturing and just-in-time (JIT) production environments to trigger the movement, production, or supply of parts in a manufacturing process.

Throughput

The rate at which a system generates its products or services over a given period of time.