Identify which of the following statements is true.

A.

A corporation can be subject to both the accumulated earnings tax and the personal holding company tax in the same year.

B.

The accumulated earnings tax is applied to acorporation's earnings. If the earnings are not subsequentlydistributed, the earnings will be taxed again under the accumulated earnings tax the next year.

C.

The accumulated earnings tax is not levied on thecorporation's total accumulated earningsbalance, but only on itscurrent-year addition to the balance.

D.

All of the above are false.