Which of the Following Is an Example of the Income-Shifting

question 95

Multiple Choice

Which of the following is an example of the income-shifting strategy?

• A)A corporation paying its shareholders a $20,000 dividend.
• B)A corporation paying its owner a $20,000 salary.
• C)A high tax rate taxpayer investing in tax-exempt municipal bonds.
• D)A cash-basis business delaying billing its customers until after year-end.
• E)None of the choices are correct.

---

Definitions:

Aristotle

An ancient Greek philosopher and polymath, who made notable contributions to various fields of knowledge, including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, government, ethics, biology, and zoology.

Learning and Memory

A process where information is encoded, stored, and retrieved in the brain, facilitating knowledge acquisition and retention.

Motivation and Emotion

The driving forces behind human behavior and feeling states that influence actions, goals, and cognition.

SQ3R

A study method involving five steps: Survey, Question, Read, Recite, and Review, designed to enhance comprehension and retention of material.