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Xavier has excess liquidity. He decides to invest his cash in equity funds that generate...

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Accounting

Xavier has excess liquidity. He decides to invest his cash in equity funds that generate capital gains, rather than bond funds that generate interest income. Which of the following is true?

A.This is a tax avoidance transaction;

B.This is a tax avoidance transaction;

C.One of the tax planning principles illustrated in this statement is: choosing one type of income over another for lower tax rates;

D. One of the tax planning principles illustrated in this statement is: splitting income among family members to reduce Xavier's tax liability;

E.None of the above.

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