Which of the Following Statements Regarding the Accumulated Earnings Tax

question 40

Multiple Choice

Which of the following statements regarding the accumulated earnings tax is true?

• A)The accumulated earnings tax is imposed instead of the regular corporate income tax.
• B)The accumulated earnings tax is intended to coerce corporations to pay dividends.
• C)The accumulated earnings tax is calculated by the corporation and paid on its annual corporate income tax return.
• D)All of the above statements are true.

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