Identify the tax planning technique employed in each of the following cases (No explanation is necessary):
1. Rory has run a successful proprietorship for the past four
years and has now decided to incorporate the business.
2. The sole shareholder of ABC Co. purchased the shares of the
company in 2016 for $25,000, and has recently valued the shares at
$150,000. In preparation to sell the company to an arm's-length
party, the shareholder decided not to issue the usual annual
dividend of $20,000.
3. XYZ Inc. has chosen to delay the recognition of a discretionary
reserve until the following year.
Answer :
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