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:

Team Members

Individuals who belong to a group working together towards a common goal, sharing responsibilities, and contributing their skills and efforts.

Optimum Achievement

Achieving the best or most favorable outcome within given constraints or conditions.

Collaboration

The action of working with someone to produce or create something, emphasizing shared goals and teamwork.

Open-book Management

A management approach where businesses share their financial and operational information with all employees to engage and empower them.