Investors Corporation has ten unrelated individual shareholders who each own 10% of the outstanding stock. For their tax year ended December 31 of this year, Investors' gross income includes:
Interest on federal government obligations$ \quad\quad\$ 10,000 $ Dividends from savings and loan associations
$\begin{array}{ll}
\text { on passbook savings accounts } & \$ 2,000 \
\text { Interest earned on notes receivable } & \$ 5,000 \
\text { Net rental income } & \$ 3,000
\end{array}$ No dividends are paid during the tax year or during the 2-1/2 month throwback period. Deductible administrative expenses total $4,000 for the year. Rental income has been reduced by $1,000 of depreciation and $2,000 of interest expense. What is Investors' undistributed personal holding company income?

Question

Investors Corporation has ten unrelated individual shareholders who each own 10% of the outstanding stock. For their tax year ended December 31 of this year, Investors' gross income includes:
 Interest on federal government obligations$ \quad\quad\$ 10,000 $ Dividends from savings and loan associations
 $\begin{array}{ll}
\text { on passbook savings accounts } & \$ 2,000 \
\text { Interest earned on notes receivable } & \$ 5,000 \
\text { Net rental income } & \$ 3,000
\end{array}$ No dividends are paid during the tax year or during the 2-1/2 month throwback period. Deductible administrative expenses total $4,000 for the year. Rental income has been reduced by $1,000 of depreciation and $2,000 of interest expense. What is Investors' undistributed personal holding company income?

Quizplus · Accepted Answer

The Answer of Investors Corporation has ten unrelated individual shareholders who each own 10% of the outstanding stock. For their tax year ended December 31 of this year, Investors' gross income includes:
 Interest on federal government obligations$ \quad\quad\$ 10,000 $ Dividends from savings and loan associations
 $\begin{array}{ll}
\text { on passbook savings accounts } & \$ 2,000 \
\text { Interest earned on notes receivable } & \$ 5,000 \
\text { Net rental income } & \$ 3,000
\end{array}$ No dividends are paid during the tax year or during the 2-1/2 month throwback period. Deductible administrative expenses total $4,000 for the year. Rental income has been reduced by $1,000 of depreciation and $2,000 of interest expense. What is Investors' undistributed personal holding company income?

Investors Corporation Has Ten Unrelated Individual Shareholders Who Each Own $10,000 \quad\quad\$ 10,000 $10,000

Investors Corporation Has Ten Unrelated Individual Shareholders Who Each Own $\quad\quad\$ 10,000$