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:

Discrepancy

A lack of compatibility or similarity between two or more facts, figures, or perspectives.

Higher Goals

These are ambitious objectives that go beyond immediate or basic needs, focusing on larger, aspirational targets.

Delayed Reinforcement

A scenario in which a reward does not immediately follow the desired action, which can affect the strength and persistence of learning.

Partial Reinforcement

A conditioning method where a response is only occasionally rewarded, leading to more resilience in the learned behavior.