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Business, 07.07.2019 04:30, SkylarAaliyah

What is the accumulated net income of a corporation called?

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Identify which of the following statements is true.a. a corporation bears the burden of proving that its earnings are not being accumulated to avoid income taxes.b. to avoid the accumulated earnings tax, a corporation needs to have a definite plan for expending the accumulated earnings.c. in practice, the accumulated earnings tax applies only to closely held corporations.

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What are the effects of a below-market loan for $100,000 made by a corporation to its chief executive officer as an enticement to get him to remain with the company? a. the corporation has imputed interest income and the employee is deemed to have received a gift. b. the corporation has imputed interest income and dividends paid. c. the employee has no income unless the funds are invested and produce investment income for the year. d. the employee has imputed compensation income and the corporation has imputed interest income. e. none of these.

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