Determine whether the following statements about the accumulated earnings tax are true or false:
a. Before the IRS can impose the accumulated earnings tax, it need only show that tax avoidance was one of the motives for the corporation’s unreasonable accumulation of earnings.
b. Long-term capital gains are included in the accumulated earnings tax base.
c. Each corporate member of a controlled group can claim a separate $150,000 or $250,000 accumulated earnings credit.
d. A dividends-paid deduction can be claimed for both cash and property distributions (other than nontaxable stock dividends) made by a corporation. This deduction reduces both regular taxable income and accumulated taxable income.
e. The accumulated earnings tax liability cannot be eliminated by paying a deficiency dividend.
f. Interest and penalties on the accumulated earnings tax deficiency accrue only from the date the IRS or the courts determine that the tax is owed.
g. The accumulated earnings tax is self-reported on Form 1120-AET that is filed along with the corporate tax return.