Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A)Beach Corporation, an S corporation, has gross receipts of $240,000; taxable income of $120,000; passive investment income of $100,000; and expenses directly attributable to the passive investment income of $20,000. The corporation's excess net passive income is $32,000.
• B)The built-in gains tax applicable to S corporations can be avoided if the property is held for ten years.
• C)An S corporation generally will not owe the built-in gains tax if the corporation has never been a C corporation.
• D)All of the above are true.

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Definitions:

CRP

C-reactive protein, a substance produced by the liver in response to inflammation, measured in blood tests as an indicator of infection or autoimmune disorders.

Estrogen Hormone Therapy

A treatment involving the use of estrogen hormones to relieve symptoms associated with menopause and to reduce the risk of osteoporosis in postmenopausal women.

Abbreviation

The process of shortening something, usually a word or phrase, by omitting letters or using initial letters instead.

Colles Fracture

A type of fracture of the distal radius in the forearm with dorsal (posterior) displacement of the wrist and hand.