1. The Assignment of Income Doctrine says, a. Income can be assigned to anyone you wish. b. Your wages can be taxable to anyone in your immediate family, if you give permission to your employer. c. Income from property is taxed to the owner of the property. d. Income from property is taxed to anyone who leases the property from you, if related. e. None of the above. f. All the above. 2. Which of the following tax planning strategies will NOT result in a shifting of taxable income to another taxpayer? a. Hiring your son to do legitimate work in your business. b. Gifting your rental property to a trust whose beneficiaries are your children who are more than 25 years old. c. Paying your daughter to mow your lawn. d. None of the above. a. 3. Which of the following statements regarding municipal bond interest is true? All interest from municipal bonds is taxable. b. The formula to compare a taxable bond with a tax-exempt municipal bond is: Tax Free Interest Rate x (1 Federal Marginal Tax Rate) = Taxable bond rate. c. Interest from municipal bonds is always taxable on your state return. d. The gain on sale of a municipal bond is taxable. e. None of the above. 4. D purchased all the stock in SB, Inc., in 1980 for $70,000. On December 31 of the current year, SB, Inc., made a cash distribution of $165,000 to D. Assuming SB, Inc., has current E&P of $25,000 and accumulated E&P of $40,000, the distribution will be treated as a. b taxable dividend of $165,000. taxable dividend of $40,000 and nontaxable return of investment of $125,000. taxable dividend of $40,000, nontaxable return of investment of $70,000, and a capital gain of $55,000. taxable dividend of $65,000, nontaxable return of investment of $70,000, and a capital gain of $30,000. d