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:

Secure Attachments

A strong and healthy emotional bond that forms between a child and their caregiver, characterized by trust and a sense of safety.

Secure Attachment

A type of emotional bond in relationships characterized by trust, a sense of security, and a positive view of oneself and others.

Trustworthy

Descriptive of a person or entity deemed reliable, dependable, and capable of being trusted.

Comfort

A state of physical and emotional ease and freedom from pain or constraint.