Taxpayer F Owns and Operates a Cash Basis Bookkeeping Service

Taxpayer F owns and operates a cash basis bookkeeping service as a sole proprietor.Capital is not a material income-producing factor in the business.F would like to "shift" some of the income he earns in the business to his son, S, who is 25 years old.Which of the following techniques will accomplish F's goal?

A) F hires S as an employee and pays him a reasonable salary for services actually performed.
B) F gives S an ownership interest in the business in the form of a partnership interest.
C) F gives S an ownership interest in the business in the form of a stock interest in an S corporation, and F draws no salary from the corporation.
D) F makes a gift of the business accounts receivable to S.