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.

---

Definitions:

Negotiator Role

The function or part played by an individual who seeks to reach an agreement or resolve differences through discussion.

Managing Organization

The systematic approach to handling and overseeing the operational, financial, and strategic functions of an organization.

Resources

The assets, materials, and inputs needed by businesses or individuals to produce goods or services.

Growing Pains

Growing pains signify the difficulties or challenges faced by organizations or individuals when expanding or progressing rapidly.