Q 16 Identify which of the following statements is true.

		A corporation can be subject to both the accumulated earnings tax and the personal holding company tax in the same year.
		The accumulated earnings tax is applied to a corporation's earnings. If the earnings are not subsequently distributed, the earnings will be taxed again under the accumulated earnings tax the next year.
		The accumulated earnings tax is not levied on the corporation's total accumulated earnings balance, but only on its current-year addition to the balance.
		All of the above are false.