Problem: Module 9 Textbook Problem 10 Learning Objectlve: 9-7 Explain the purpose of the accumulated earnings tax and the personal holding compeny tox Duning a recent IRS audit, the revenue agent decided that the Parker family used their closely heid corporation, Falco, to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Faico's taxabie income was 5890000 , it paid no dividends, and it had no business need to retain income. Falco's marginal tax rate in pnor years was 34 percent, Assiame ithe accumulated earnings tax rate is 20% for all applicable years in this problem Required: a. Compute Falco's accumulated earnings tax assuming that it had accumulated 55 millon after-tax income in prior yeas Assurre that for these years at issue, a corporation is exempt up to $250.000 of accumulated earnings without dernonstrating a reasonabie business need for the accumulation. b. Compute Falco's accumulated earnings tax assuming that is had accumulated $129.000 after-tax income in prior years. Acsume that for these years at issue, a corporation is exempt up to $250.000 of accumulated earnings without demonstratng a revsanable bustness need for the occumulation. Complete this question by entering your answers in the tabs below. Compute Falco's accumulated earnings tax ascuming that it had accumulated $129,000 after-tax insome in phoc years. IErcer your answer in doilars and not in milicess of dollars.)