Tax Planning Involves the Timing of Income and Deductions

question 102

Multiple Choice

Tax planning involves the timing of income and deductions. General rules of thumb to follow when planning include
I.putting income into the year with the lowest marginal tax rate.
II.deferring recognition of income.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Start Winding

A winding in a motor that is used during the start-up phase to create an initial rotating magnetic field.

Split-phase Motor

A type of single-phase induction motor that uses two windings, a start and run winding, to create a phase shift for starting torque.

Stator Core

The stationary part of an electric motor or generator, consisting of laminated silicon steel, that supports the winding where the magnetic field is produced.

Large Wire

Refers to wire of a significantly large diameter, which typically can carry higher current or withstand higher electrical loads.