Anexcessearningsaccumulationtaxisleviedwhen
A. shareholdersreceivedividendswhichexceedthefirmsearnings.
B. firmsdonotpaydividendsinordertodelaytheownerstaxliability.
C. firmsdonotpaydividendstoreinvestinthefirm.
D. earningsexceeddividends.
Answer:B
Anexcessearningsaccumulationtaxisleviedwhen
A. shareholdersreceivedividendswhichexceedthefirmsearnings. B. firmsdonotpaydividendsinordertodelaytheownerstaxliability. C. firmsdonotpaydividendstoreinvestinthefirm. D. earningsexceeddividends.