Which of the Following Is an Example of the Income-Shifting

question 95

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:

Reason

The power of the mind to think, understand, and form judgments logically.

Evidence

Justifications for accepting a statement or assertion as true or likely true.

Rational Discussion

A conversation or debate conducted with reason and logic, focusing on facts and evidence rather than emotions or personal biases.

Allusions

Indirect references to a person, place, thing, or idea of historical, cultural, literary, or political significance.