Which of the following is an example of the timing strategy?
A)A corporation paying its shareholders a $20,000 dividend.
B)A parent employing her child in the family business.
C)A taxpayer gifting stock to his children.
D)A cash-basis business delaying billing its customers until after year-end.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Timing strategy involves timing when to recognize income or expenses to maximize tax benefits. In this scenario, delaying billing customers until after year-end can help the cash-basis business reduce their taxable income in the current year and defer it to the next year.

Which of the Following Is an Example of the Timing