Alfred Is a Consultant for Data Planners

question 28

Multiple Choice

Alfred is a consultant for Data Planners. In an effort to minimize his tax liability he enters into a legal contract transferring 25% of the fees from a new consulting contract to his son Ken, who is 42, and owns a pest control business. Which of the following statements concerning the transaction is correct?
I.The assignment-of-income doctrine prevents Alfred from transferring taxation of the income to his son.
II.The assignment-of- income doctrine does not apply because the transfer is supported by a legal contract.
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• 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:

Amniotic Cavity

The fluid-filled space between the embryo or fetus and the amniotic sac, providing protection and facilitating movement.

Gastrulation

A phase early in the embryonic development of most animals, during which the single-layered blastula is reorganized into a multilayered structure known as the gastrula.

Germ Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo that give rise to all organs and tissues in the body.

Embryonic Disk

Point in the inner cell mass at which the embryo begins to be formed.