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A Corporation Is Classified as a Personal Holding Company

Question 62

Multiple Choice

A corporation is classified as a personal holding company.Its taxable income is $300,000 and its regular federal income tax liability is $100,250.The company claims a $40,000 dividends-received deduction and pays $30,000 dividends to its shareholders.The personal holding company tax is


A) $41,950.
B) $29,963.
C) $31,463.
D) $65,053.

Correct Answer:

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