Which of the Following Is Not a Barrier to Income

question 105

Multiple Choice

Which of the following is not a barrier to income shifting among family members?

• A)The assignment of income doctrine.
• B)Net unearned income for children 18 and younger taxed at parents' marginal tax rates.
• C)Elimination of preferential tax rates (on dividends and long-term capital gains)for dependents.
• D)"The assignment of income doctrine" and "Net unearned income for children 18 and younger taxed at parents' marginal tax rates".

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Definitions:

Deferred Tax

A tax liability or asset that arises due to the temporary differences between the accounting income and the taxable income.

Goodwill

The value attributed to a company's brand name, customer relationships, and other intangible assets that are not separately identifiable.

Liabilities

are present financial obligations arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.

Tax Rate

The percentage at which an individual or corporation is taxed.