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:

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all U.S. court cases that involve a point of federal law.

Homosexual Conduct

Behaviors or actions between individuals of the same sex that may be expressed through physical intimacy or relationships.

Same-Sex Marriage

The legally recognized union of two individuals of the same sex, granting them the same matrimonial rights and responsibilities as different-sex couples.

Supreme Court Decision

A ruling made by the Supreme Court, the highest judicial authority in the United States, which has the final say on issues of federal law and constitutional interpretation.