Accumulated earnings tax problem

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Reference no: EM13126044

T corporation has accumulated its earnings beyond the reasonable needs of the business. The only reason for the accumulation is the conservative view of the sale stockholder who control corporate policy. The accumulation was motivaated by his thinking that a depression was just around the corner. Tax savings did not enter his mind. Does the accumulated earnings tax apply to T corporation?

Reference no: EM13126044

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