Which of the Following Actions Cannot Be Used to Eliminate

question 23

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.

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Definitions:

Cultural Expectations

The shared beliefs or norms that a group holds about how individuals should behave in various contexts.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various forms.

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Attitude

A settled way of thinking or feeling about something, which is often reflected in a person's behavior.