Question: Using the following codes, identify the basic approach(es) to tax avoidance that are used in each of the following cases: AR - Avoiding recognition of

Using the following codes, identify the basic approach(es) to tax avoidance that are used in each of the following cases:

AR - Avoiding recognition of taxable income

CT - Changing the timing of recognition of income, gains, deductions, losses, and credits

CJ - Changing tax jurisdictions

CC - Changing the character of income

RP - Tax planning among related tax payers

a. Albert invests his savings in tax-exempt state bonds.

b. Betty invests in non-dividend-paying corporate stocks by using borrowed funds.

c. Chuck lends $100,000 to his daughter on an interest-free demand note.

d. Ed invests $100,00 of his savings in a home for his own use.

e. Frankie invests in a mutual fund that purchases only the indebtedness of the state in which he lives.

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