During a Recent IRS Audit, the Revenue Agent Decided That

question 87

Multiple Choice

During a recent IRS audit, the revenue agent decided that Roger used his closely-held corporation, Dodger Inc., to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Dodger's taxable income for the year was $500,000, and it paid no dividends. Compute Dodger's accumulated earnings tax, assuming that it had accumulated $2 million after-tax income in prior years.

• A) $100,000
• B) $400,000
• C) $50,000
• D) $0

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Definitions:

Irrational Thoughts

Thoughts that are not based on reason or logic, often leading to negative and unrealistic outcomes or beliefs.

Self-Defeating Thoughts

Negative thoughts about oneself that reinforce personal failure or inadequacy.

Cognitive-Behavioral Therapy

A short-term psychotherapeutic treatment aiming to change patterns of thinking or behavior that contribute to people's difficulties, thus changing the way they feel.

Present Focus

The practice of being mentally and emotionally engaged in the current moment, often used as a mindfulness technique.