Identify Which of the Following Statements Is True

question 4

Multiple Choice

Identify which of the following statements is true.

• A)A corporation accumulates earnings to fund the redemption of a shareholder's stock following her death so as to provide her estate with liquidity to pay death taxes. Such an accumulation of earnings is a reasonable business need.
• B)A corporation accumulates earnings to fund a buy-sell agreement. Such an accumulation of earnings is a reasonable business need.
• C)A corporation's net capital gain (minus any federal income taxes paid with respect to such gain)increases the tax base for the accumulated earnings tax.
• D)All of the above are false.

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Definitions:

Digital Communication

The sharing or exchange of information and messages through electronic systems and devices, such as computers and smartphones, over digital platforms or networks.

Conversational Tone

A writing or speaking style that is informal, friendly, and akin to natural spoken communication.

Personal Pronouns

Words used to replace a person's name in a sentence, reflecting personal relationships of the speaker with others.

Audience-Centered Messages

are tailored communications focused on the interests, needs, and preferences of the audience, aiming to increase engagement and response.