Indicators of possible exposure of accumulated earning tax risk would include all of the following except
A)substantial marketable securities held by the corporation.
B)loans to shareholders.
C)limited dividend paying history.
D)All of the above factors could indicate retention of earnings beyond business needs.

Question

Quizplus · Accepted Answer

All of the listed factors (A, B, and C) could indicate retention of earnings beyond business needs, which is a potential indicator of accumulated earnings tax risk. Therefore, none of them are exceptions.

Indicators of Possible Exposure of Accumulated Earning Tax Risk Would