Which of the Following Statements Regarding the Accumulated Earnings Tax

Multiple Choice

Which of the following statements regarding the accumulated earnings tax is correct in 2011?

A) If Blue, Inc.'s accumulated taxable income for 2011 is $180,000, the calculated accumulated earnings tax liability would be $53,450 [($50,000 ´ 15%) + ($25,000 ´ 25%) + ($25,000 ´ 34%) + ($80,000 ´ 39%) ].
B) Blue, Inc., calculates accumulated taxable income for 2011 of $100,000. Therefore, it should increase the amount paid to the IRS for 2011 by $15,000 ($100,000 ´ 15%) .
C) The accumulated earnings tax applies to C corporations, but applies to S corporations at only the shareholder level.
D) The tax rate for the accumulated earnings tax of 35% is the same as the highest tax bracket for the corporate taxpayer.
E) None of the above.