Which of the Following Actions Cannot Be Used to Eliminate

question 57

Multiple Choice

Which of the following actions cannot be used to eliminate a potential accumulated earnings tax liability situation involving a corporation owned by a mother and a father?

• A)Create plans to invest retained earnings in a plant expansion.
• B)Make a cash distribution within 2 1/2 months after the end of the tax year.
• C)Make a deficiency distribution within 90 days of the date on which the IRS determines that an accumulated earnings tax liability is owed.
• D)Liquidate the corporation.

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Definitions:

Power And Status

Concepts denoting the capacity to influence others and the position or rank within a social hierarchy, respectively.

Prejudiced

Holding preconceived opinions or judgments about people or groups without sufficient knowledge, fairness, or reason, often leading to discrimination.

Achievements

Notable accomplishments or the successful completion of tasks, often marked by a high level of skill or effort.

Sexually Explicit Films

Movies that display explicit sexual content intended for adult audiences, often with the purpose of arousal.