Identify Which of the Following Statements Is True

question 20

Multiple Choice

Identify which of the following statements is true.

• A)In practice, the accumulated earnings tax applies only to closely held corporations.
• B)A corporation bears the burden of proving that its earnings are not being accumulated to avoid income taxes.
• C)To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
• D)All of the above are true.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Repetition Priming

Priming that facilitates the cognitive processing of information after a recent exposure to that same information.

Implicit Memory

Implicit memory refers to unconscious memory, or the ability to recall or recognize information without deliberate effort.