Foster Corporation has gross income for regular tax purposes of $100,000, which includes a net Sec. 1231 gain of $10,000 and a net capital gain of $10,000. Ordinary gross income for personal holding company purposes is

Question

Quizplus · Accepted Answer

Ordinary gross income for personal holding company purposes excludes net Sec. 1231 gains and net capital gains. Therefore, $100,000 - $10,000 (net Sec. 1231 gain) - $10,000 (net capital gain) = $80,000.

Foster Corporation Has Gross Income for Regular Tax Purposes of $100,000