Identify Which of the Following Statements Is True

question 89

Multiple Choice

Identify which of the following statements is true.

• A)Under the check-the-box rules,an LLC with more than one member is taxed as a corporation unless it elects to be taxed as a partnership.
• B)The partnership's tax year closes with respect to a partner whose interest is transferred by gift.
• C)An LLC has been taxed as a partnership for five years.Under the check-the-box rules,the LLC makes a timely election in 2009 to be taxed as a C corporation.The election of C corporation status is permitted and results in the LLC's assets being transferred from a partnership to a C corporation under the federal income tax rules.
• D)All of the above are false.

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Definitions:

Labour Efficiency Variance

This is a measure of the difference between the actual labor hours used in production and the standard labor hours expected to produce the same level of output.

Variable Manuf. Overhead

Indirect, variable costs incurred during the manufacturing process, excluding direct labor and direct materials.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected, multiplied by the standard labor rate.

Direct Labour Used

The total effort, measured in hours or costs, of workers directly involved in the manufacturing process of a product.