Problem: Module 9 Textbook Problem 10 Learning Objective: 9-7 Explain the purpose of the accumulated earnings tax and the personal holding company tax During a recent IRS audit the revenue agent decided that the Parker family used their closely held corporation Falco, to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Falco's taxable income was $1030.000 it paid no dividends and it had no business need to retain Income Falco's marginal tax rate in prior years was 34 percent Assume the accumulated earnings tax rate is 20% for all applicable years in this problem Required: a. Compute Falco's accumulated earnings tax assuming that it had accumulated $3 million after-tax income in prior years. Assume that for these years at issue, a corporation is exempt up to $250,000 of accumulated earnings without demonstrating a reasonable business need for the accumulation b. Compute Falco's accumulated earnings tax assuming that it had accumulated $143,000 after-tax income in prior years. Assume that for these years at issue a corporation is exempt up to $250,000 of accumulated earnings without demonstrating a reasonable business need for the accumulation, points Complete this question by entering your answers in the tabs below. Suipped Required A Required P Compute Falco's accumulated earnings tax assuming that it had accumulated $3 million after tax income in prior years. (Entet your answer in dollars and not in millions of dollars.) Accumulated carrings tax Required Required) Complete this question by entering your answers in the tabs below. Skoped Required A Required B Print Compute Falco's accumulated earnings tax assuming that it had accumulated $143,000 after-tax income in prior years. (Enter your answer in dollars and not in millions of dollars.) Accumulated eaming tax