JNC Company structured an income-generating transaction so that the income and cash flow shifted to Juno Inc. Presuming that JNC makes rational decisions, which of the following statements is false?

Question

Quizplus · Accepted Answer

The statements provided all represent plausible reasons or outcomes for JNC Company to structure a transaction that shifts income and cash flow to Juno Inc. A) It's common for related parties with mutual economic interests to engage in transactions that optimize overall tax liabilities or financial outcomes. B) Shifting income to a party with a lower marginal tax rate can reduce the overall tax burden on the income, making the transaction more tax-efficient. C) Increasing the net present value (NPV) of the transaction is a rational goal for a company, and structuring transactions to optimize tax efficiency can contribute to this objective.

JNC Company Structured an Income-Generating Transaction So That the Income