Identify Which of the Following Statements Is True

question 28

Multiple Choice

Identify which of the following statements is true.

• A)The exchange of stock for services rendered is not a taxable transaction.
• B)The repeal of Sec. 351 would result in more existing businesses being incorporated.
• C)Section 351 was enacted to allow taxpayers to incorporate without incurring adverse tax consequences.
• D)All of the above are false.

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Definitions:

CPI

Consumer Price Index, an indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

GDP Deflator

A measure of the price level of all domestically produced goods and services in a country and is used to convert output measured at current prices into constant-dollar GDP.

Economists

Experts focused on exploring how goods and services are created, shared, and used, while examining trends and problems in the economy.

CPI

The Consumer Price Index reflects the average cost changes over time for a mix of consumer goods and services, including items such as food, medical care, and transportation, through a weighted average approach.