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Accumulated Earnings Tax: which statements are true

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The following statements pertain either to the accumulated earnings tax, or to the personal holding company tax, or to both:

(1) Imposition of the tax depends on a stock ownership test specified in the statute.
(2) Imposition of the tax can be mitigated by sufficient dividend distributions.
(3) The tax should be self-assessed by filing a separate schedule along with the regular tax return.

Choose 1 Only
2 Only
3 Only
Or All of the Above

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Solution Summary

Accumulated Earnings Tax and Personal Holding Company Tax are examined.

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ANSWERS

ANSWER: ALL OF THE ABOVE

Definition of accumulated earnings tax: A tax imposed by the federal government on companies with retained earnings deemed to be ...

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