Which of the Following Is an Example of the Income

question 40

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 these

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Definitions:

Gingivitis

A common and mild form of gum disease (periodontal disease) that causes irritation, redness, and swelling (inflammation) of your gingiva, the part of your gum around the base of your teeth.

Periodontitis

A serious gum infection that damages the soft tissue and destroys the bone supporting teeth, potentially leading to tooth loss.

Mucosa

A moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Submucosa

A layer of dense irregular connective tissue or fibrous connective tissue that lies beneath a mucous membrane and supports it, often containing glands, blood vessels, and nerves.