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:

Taking Care Of Children

The activities and responsibilities involved in ensuring the health, safety, and emotional well-being of a child.

Launched

To set in motion or initiate something, such as a product, project, or spacecraft, into action or into the market.

Balance

The ability to maintain a body's center of gravity within its base of support, vital for everyday activities and sports.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a high level of organization, thoughtfulness, and responsible behavior.