Montrose Corporation is classified as a personal holding company.It is almost year-end.The company's taxable income and regular federal income tax liability are expected to be $100,000 and $22,250,respectively.The company will claim a $20,000 dividends-received deduction and earlier in the year paid $25,000 of dividends to its shareholders.How much in additional dividends must be paid to shareholders in order to avoid the personal holding company tax?

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C)
 11ea7cb8_54c3_8daa_928c_397f1a09e5a9_TB1258_00 In order to avoid the personal holding company tax,additional dividends of $72,750 must be paid.

Montrose Corporation Is Classified as a Personal Holding Company