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:

Aggression

Behavior intended to harm or injure another living being who is motivated to avoid such treatment.

Psychodynamic Approach

A psychological theory or approach that emphasizes the influence of the unconscious mind on behavior, originated by Sigmund Freud.

Psychology

Research focused on understanding the human brain and its activities, mainly as they impact behavior in certain situations.

Unconscious Mind

That part of the mind which is inaccessible to the conscious mind but that affects behaviors and emotions.