BNC, a closely held corporation, was organized in 1987. To date, it has accumulated more than $10

Question:

BNC, a closely held corporation, was organized in 1987. To date, it has accumulated more than $10 million after-tax income. This year, BNC's taxable income is $750,000, and its federal tax is $255,000. Describe two different ways that BNC can avoid exposure to the accumulated earnings tax for the year.