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:

Intuitionist Theory

A philosophical theory suggesting that moral judgments are made based on intuition or innate feelings rather than conscious reasoning.

Self-interest

The motivation to pursue one's own welfare or benefit.

Preconventional Morality

The first level in Kohlberg’s theory of moral development, where moral reasoning is based primarily on external consequences and rewards.

Conventional Morality

A stage in moral development where individuals make moral decisions based on societal rules and laws.