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:

REM Rebound

An increased frequency of rapid-eye-movement (REM) sleep experienced after a period of REM sleep deprivation.

Repression

A defense mechanism where unpleasant thoughts or desires are unconsciously excluded from the conscious mind.

Suppression

Consciously or unconsciously avoiding or holding back thoughts and feelings perceived as unacceptable.

Nonconscious Process

Mental processes that occur outside of human awareness, influencing thoughts, feelings, and behaviors without conscious recognition.