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 is the same as the tax rate for a personal service corporation (PSC) .
B) For a closely held corporation that generates substantial earnings and never pays dividends,the tax still can 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.