Multiple Choice
Which of the following are "reasonable needs" that will help a corporation in avoiding the accumulated earnings tax?
A) The corporation is opening locations in neighboring cities.
B) Funds are used to make a loan to a major shareholder.
C) The corporation uses funds for the redemption of the stock of a disgruntled shareholder.
D) Not making distributions helps to minimize the combined shareholder/corporation tax liabilities.
E) All of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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