Identify Which of the Following Statements Is True

question 31

Multiple Choice

Identify which of the following statements is true.

• A)Under the check-the-box rules, an LLC with more than one member is taxed as a corporation unless it elects to be taxed as a partnership.
• B)The partnership's tax year closes with respect to a partner whose interest is transferred by gift.
• C)An LLC has been taxed as a partnership for five years. Under the check-the-box rules, the LLC makes a timely election in 2019 to be taxed as a C corporation. The election of C corporation status is permitted and results in the LLC's assets being transferred from a partnership to a C corporation under the federal income tax rules.
• D)All of the above are false.

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Definitions:

Loose Coalition

A temporary and informal alliance among various groups or individuals, often with less structure and organization than a formal coalition.

Reputations

The collective opinions, perceptions, or beliefs held about an individual's or entity's character, quality, or achievements, affecting their social or professional standing.

BATNA

Best Alternative to a Negotiated Agreement; the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.

Source Of Power

The origin or basis from which an individual, group, or organization derives the ability to influence others.