a$.$ Explain the difference between income splitting and income shifting.

A$.$ Shifting income means moving income from one tax bracket to another. Splitting income means moving it from one tax return to

another.

B$.$ Shifting income means moving income from one tax return to another. Splitting income means creating additional taxable

entities $($such as $C$ corporations$)$ so as to spread income between more taxpayers.

C$.$ Shifting income means moving income from one tax year to the following tax year using various accounting recognition methods.

Splitting income means moving it from one tax return to another.

D$.$ Shifting income means moving income from one tax return to another. Splitting income means ratably recognizing income over

several tax years.