Which of the Following Is Descriptive of the Accumulated Earnings

Multiple Choice

Which of the following is descriptive of the accumulated earnings tax?

A) The tax rate may not be the same as the tax rate on qualified dividends.
B) For a closely held corporation that generates substantial earnings and never pays dividends, the tax cannot be avoided.
C) The tax applies to both C corporations and S corporations.
D) Only a. and b. are correct.
E) a., b., and c. are correct.