Which of the Following Are "Reasonable Needs" That Will Help

question 77

Multiple Choice

Which of the following are "reasonable needs" that will help a corporation in avoiding the accumulated earnings tax?

• A)The corporation is opening locations in neighboring cities.
• B)Funds are used to make a loan to a major shareholder.
• C)The corporation uses funds for the redemption of the stock of a disgruntled shareholder.
• D)Not making distributions helps to minimize the combined shareholder/corporation tax liabilities.
• E)All of the above.

---

Definitions:

Thrust Faults

Thrust faults are a type of fault where the upper block, or hanging wall, moves up and over the lower block, or footwall, typically occurring at a low angle and often associated with mountain building.

Normal Faults

A geological fault in which the hanging wall moves down relative to the footwall, typically resulting from extensional forces.

Glacially Carved

Landforms shaped by the movement of glaciers, resulting in features such as U-shaped valleys and fjords.

Metamorphic Rocks

Rocks that have been transformed from their original state by heat, pressure, or chemically active fluids.