Which of the Following Is Not a Permissible Reason for a Regular

question 26

Multiple Choice

Which of the following is not a permissible reason for a regular corporation to accumulate earnings at the entity level and avoid the imposition of the accumulated earnings tax?

• A) To construct a new plant facility in connection with expanding the corporation's business into a new geographic region
• B) To accumulate a fund of cash with which to pay off long-term debt due in twenty years
• C) To fund the development of a new product line
• D) To invest in the stock of an unrelated company to take advantage of the dividends received deduction

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Definitions:

Competitive Atmospheres

Environments where individuals or groups compete against each other to achieve success, recognition, or rewards, often leading to high levels of pressure and stress.

Achieve

To successfully reach a desired or intended goal through effort, skill, or courage.

Suicide Prevention Centers

Organizations or facilities dedicated to providing support, education, and intervention strategies to reduce the incidence of suicide and assist those at risk.

Suicide Rate

The frequency at which individuals in a population take their own lives, usually measured per 100,000 people.