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

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 these


Answer: B


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