Identify Which of the Following Statements Is True

question 20

Multiple Choice

Identify which of the following statements is true.

• A)In practice, the accumulated earnings tax applies only to closely held corporations.
• B)A corporation bears the burden of proving that its earnings are not being accumulated to avoid income taxes.
• C)To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
• D)All of the above are true.

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Definitions:

Decorated Black Serviceman

A Black military member who has been honored with awards or medals for his service and bravery.

Black Employment

The participation of African American individuals in the labor force, often highlighting issues of employment discrimination and economic disparity.

Defense Industries

Industries involved in the production of weapons, military technology, and equipment for national defense.

Labor Unions

Organizations formed by workers from related fields that work for the common interest of its members in terms of pay, working hours, working conditions, and other employment rights.