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:

Chemical Properties

Are characteristics of a substance that become evident during or after a chemical reaction, indicating the ability of a substance to undergo certain chemical changes.

Behavioral Self-Monitoring

The practice of systematically observing, analyzing, and recording one's own behaviors and responses.

Skills Training

A process of teaching specific abilities or competencies to enhance performance in tasks or activities.

Cognitive Therapy

A type of psychotherapy that focuses on changing negative patterns of thought to alter unwanted behavior patterns or treat mood disorders such as depression.