[ANSWERED] Acme Corporation is a highly profitable closely held corporation that has never paid a dividend….

Acme Corporation is a highly profitable closely held
corporation that has never paid a dividend. During the past five years,
after-tax earn ings of $200,000 per year have been reta ined in the business.
All of the earnings ($1 million) have been reinvested in operating assets and
to finance an expansion of the business. ls the corporation sub – ject to the
accumulated earnings tax because no dividends have been paid?