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:

High-Sugar Snacks

Refer to edible items with a significant amount of sugar content, often criticized for their potential health risks when consumed in excess.

Work Hours

The designated period of time during which an employee is expected to carry out their job duties.

Counterproductive Behavior

Actions undertaken by employees that deliberately hinder organizational goals or their coworkers' performance.

Embezzled

Misappropriation or theft of funds placed in one's trust or belonging to one's employer.