Which of the following is an example of the income-shifting strategy?
A. A corporation paying its shareholders a $20,000 dividend.
B. A high tax rate taxpayer investing in tax-exempt municipal bonds.
C. A corporation paying its owner a $20,000 salary.
D. A cash-basis business delaying billing its customers until after year-end.
E. None of the choices are correct.
Answer: C
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A cancelled check would be a source document for which of the following?
a. recording a purchase of inventory on credit b. recording cash received on an customer account c. recording accrued payroll d. recording a cash payment to a creditor
When borrowing money to be repaid in regular future payments, the payment is based on the present value of the loan, the interest rate and the length of the loan
a. True b. False Indicate whether the statement is true or false
What are the traditional rights of sellers and buyers?
What will be an ideal response?
A committed fixed cost can
a. never be eliminated. b. be eliminated in the short term and in the long term. c. be eliminated in the long term but not in the short term. d. be eliminated in the short term but not in the long term.