Which of the Following Actions Cannot Be Used to Eliminate

question 43

Multiple Choice

Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father?

• A)Sell additional stock to other family members.
• B)Make a cash distribution within 2 1/2 months of the end of the tax year.
• C)Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed.
• D)Liquidate the corporation.2

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Definitions:

Discordant

Describes a situation where two related things are at odds or do not match.

Anatomical Sex

Biological classification of bodies as male or female based on physical characteristics such as chromosomes, hormones, and reproductive organs.

Ambiguous

Describes information, statements, or situations that are unclear, uncertain, or open to more than one interpretation.

Woman-Child

A cultural archetype referring to an adult woman who exhibits traits or behaviors traditionally associated with children.