An excess earnings accumulation tax is levied when ________. A) share

An excess earnings accumulation tax is levied when ________.

A) shareholders receive dividends which exceed a firm’s earnings
B) firms do not pay dividends in order to delay the owners’ tax liability
C) firms do not pay dividends to reinvest in the firm
D) earnings exceed accumulated dividends over the years

 

 

ANSWER

B

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