Question: please help During a recent IRS audit, the revenue agent decided that Apple, an individuaL used his cl0ser-heid corporation. Fruit Tree Inc., to avoid shareholder

please help

During a recent IRS audit, the revenue agent decided that Apple, an individuaL used his cl0ser-heid corporation. Fruit Tree Inc., to avoid shareholder tax by! accumulating earnings beyond tl'tE reasonable needs 0f the business. Fruit Tree Inc's taxable inc0nne fur the year was $30,000 and it paid no dividends. Campute Fruit Tree ine's accumulated earnings tax. assuming that it had accumulated $195,000 after-tax inc0me in prior years. N50 assume that the accumulated earnings tax rate is 20% and up to $250,00 can be accumulated witheut incurring the accumulated earnings tax. C} $121500 0 HWHJU C:- 5150.000 0 $130,000

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