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Which of the following statements about the accumulated earnings tax is/are not correct? a. depends on a stock ownership test based on the total number
Which of the following statements about the accumulated earnings tax is/are not correct?
a. depends on a stock ownership test based on the total number of stockholders
b. can be avoided by sufficient dividend distributions
c. can be avoided by making a cash distribution with 2-1/2 months of the end of the tax year.
d. to avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.
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