Choice "C" is correct. The imposition of the accumulated earnings tax does not depend on the number of shareholders a corporation has.
Choice "d" is incorrect. Partnerships are not liable for the accumulated earnings tax, but most corporations are potentially liable.
Choice "b" is incorrect. Corporations that make distributions in excess of accumulated earnings are not liable for the accumulated earnings tax. There would be no accumulated earnings left to tax.
Choice "a" is incorrect. Personal holding companies are not liable for the accumulated earnings tax.
