During a recent IRS audit, the revenue agent decided that Apple, an individual, used his closely-held corporation. Fruit Tree Inc., to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Fruit Tree Inc's taxable income for the year was $950,000 and it paid no dividends. Compute Fruit Tree Inc.'s accumulated earnings tax, assuming that it had accumulated $247,000 after-tax income in prior years. Also assume that the accumulated earnings tax rate is 20% and up to $250,000 can be accumulated without incurring the accumulated earnings tax. $189.400 $190,000 $161,500 $140,000