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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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