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Congratulations!
You have completed ERI DLC Course 42: Accumulated Earnings and Deferred Compensation.
You should now be able to:
- Identify IRS acceptable uses for retained earnings
- Specify how intent determines whether the accumulated earning tax will be levied
- Identify reasonable business needs
- Calculate the reasonable working capital needs of a corporation using the Bardahl formula
- Specify how the Accumulated Earnings Tax is calculated
- Define the tests that the IRS uses to identify Personal Holding Companies
- Recognize what passive income is for a company
- Specify how the Personal Holding Company tax is calculated
- Recognize different types of deferred compensation plans, who may benefit from them, whether they are funded or not, and how they are taxed
- Specify why companies have golden parachutes for their executives, identify disqualified individuals, and recognize an excessive golden parachute and how it is taxed
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See our salary, cost-of-living, and executive compensation data in action.