For Each of the Examples Listed Below,state Which of the Following

question 8

Essay

For each of the examples listed below,state which of the following three categories of tax planning has been applied:
1.Shifting income from one time period to another
2.Shifting income from one entity to another
3.Shifting income from one type of income to another.
A.Jack has run a successful proprietorship for the past four years,and has now decided to incorporate his company.
B.Karen has decided not to pay herself a dividend from her corporation,(of which she is the sole shareholder),but has chosen to sell a portion of her shares to an associate instead.
C.XYZ Corporation has chosen to delay the recognition of a discretionary reserve until the following year.

---

Definitions:

Coping

The process of managing stress or adversity through various strategies or mechanisms to minimize its psychological impact.

Hyperthyroidism

A condition in which the thyroid gland is overactive, producing excessive amounts of thyroid hormones, leading to a sped-up metabolism.

Hypothyroidism

A common endocrine disorder resulting from a deficiency of thyroid hormone, leading to symptoms like fatigue, weight gain, and cold intolerance.

Dysrhythmias

Abnormal disturbances in the rhythm of the heart.