Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

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

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Definitions:

Exchange Rates

The price of one currency in terms of another for conversion purposes.

National Governments

The organization that leads a country, making and enforcing laws, and managing public resources and services.

European Union (EU)

28-nation European economic alliance.

National Market

The domestic marketplace within a country where goods and services are bought and sold.