Which of the Following Is Descriptive of the Accumulated Earnings

question 17

Multiple Choice

Which of the following is descriptive of the accumulated earnings tax?

• A)The tax rate is the same as the tax rate for a personal service corporation (PSC).
• B)For a closely held corporation that generates substantial earnings and never pays dividends,the tax still can be avoided.
• C)The tax applies to both C corporations and S corporations.
• D)Only a.and b.are correct.
• E)a. ,b. ,and c.are correct.

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Definitions:

Colostrum

Substance produced during the early days of lactation; rich in proteins and antibodies.

Suckling

The act of an infant or young animal feeding on its mother's milk.

Calories

A unit of energy used to quantify the amount of energy provided by foods and beverages.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus via the umbilical cord.