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Identify which of the following statements is true. A) In practice, the accumulated earnings tax applies only to closely held corporations. B) A corporation bears
Identify which of the following statements is true.
A) In practice, the accumulated earnings tax applies only to closely held corporations.
B) A corporation bears the burden of proving that its earnings are not being accumulated to avoid income taxes.
C) To avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
D) All of the above are true.
Please provide an explanation, thank you!
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