Identify Which of the Following Statements Is True

question 8

Multiple Choice

Identify which of the following statements is true.

• A)The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.
• B)Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income; $30,000 of depreciation, interest, and property taxes on the rental real estate; and $10,000 of dividend income. Caleb Corporation is classified as a personal holding company.
• C)Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments for the professional employees. The professional fees earned by the corporation are personal holding company income.
• D)All of the above are false.

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Definitions:

Tertiary Circular Reactions

A stage in Jean Piaget's theory of cognitive development, occurring roughly between 12 and 18 months, characterized by the purposeful adaptation of established schemes to new situations.

Secondary Circular Reactions

A developmental stage in infants marked by the repetition of actions that produce interesting outcomes, demonstrating an emerging awareness of cause and effect.

Intentionality

The quality of mental states (such as beliefs, desires, hopes, and fears) that are directed at or about situations, objects, or states of affairs.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.