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:

Labor Force

All people who are employed, as well as those who are currently unemployed but are looking for work.

Vocational Development

The process of developing and managing one’s career path, skills, and interests in the professional domain.

Labor Force Discontinuity

Interruptions or gaps in a person's employment history, which may result from various reasons such as taking care of family, pursuing education, or unemployment.

Vocational Development

The process of developing and refining skills and knowledge related to one's chosen career or occupation.