Dan receives a proportionate nonliquidating distribution

Answer: TRUE Difficulty: 2 Medium Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 16) The timing strategy becomes more attractive as tax rates decrease.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.; 03-03 Apply the concept of present value to tax planning. Bloom’s: Analyze AACSB: Analytical Thinking AICPA: BB Critical Thinking 8) The time value of money suggests that

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.; 03-03 Apply the concept of present value to tax planning. Bloom’s: Analyze AACSB: Analytical Thinking AICPA: BB Critical Thinking 8) The time value of money suggests that $1 in one year from now is worth less than $1 today.

Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 7) Assuming an after-tax rate of return of 10%, John should prefer to pay an expense of $85 today instead of an expense of $100 in one year. Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.

Difficulty: 1 Easy Topic: Basic Tax Planning Overview Learning Objective: 03-01 Identify the objectives of basic tax planning strategies.

Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 2) Nontax factors do not play an important role in tax planning.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.; 03-03 Apply the concept of present value to tax planning. Bloom’s: Analyze AACSB: Analytical Thinking AICPA: BB Critical Thinking 8) The time value of money suggests that $1 in one year from now is worth less than $1 today.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 7) Assuming an after-tax rate of return of 10%, John should prefer to pay an expense of $85 today instead of an expense of $100 in one year. Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Difficulty: 1 Easy Topic: Basic Tax Planning Overview Learning Objective: 03-01 Identify the objectives of basic tax planning strategies.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 2) Nontax factors do not play an important role in tax planning.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.; 03-03 Apply the concept of present value to tax planning. Bloom’s: Analyze AACSB: Analytical Thinking AICPA: BB Critical Thinking 8) The time value of money suggests that $1 in one year from now is worth less than $1 today.

Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 7) Assuming an after-tax rate of return of 10%, John should prefer to pay an expense of $85 today instead of an expense of $100 in one year. Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.

Difficulty: 1 Easy Topic: Basic Tax Planning Overview Learning Objective: 03-01 Identify the objectives of basic tax planning strategies.

Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 2) Nontax factors do not play an important role in tax planning.

Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.; 03-03 Apply the concept of present value to tax planning. Bloom’s: Analyze AACSB: Analytical Thinking AICPA: BB Critical Thinking 8) The time value of money suggests that $1 in one year from now is worth less than $1 today.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 7) Assuming an after-tax rate of return of 10%, John should prefer to pay an expense of $85 today instead of an expense of $100 in one year. Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Difficulty: 1 Easy Topic: Basic Tax Planning Overview Learning Objective: 03-01 Identify the objectives of basic tax planning strategies.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 2) Nontax factors do not play an important role in tax planning.

Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 7) Assuming an after-tax rate of return of 10%, John should prefer to pay an expense of today instead of an expense of 0 in one year. Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.

Difficulty: 1 Easy Topic: Basic Tax Planning Overview Learning Objective: 03-01 Identify the objectives of basic tax planning strategies.

Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 2) Nontax factors do not play an important role in tax planning.