A Corporation Is Subject to Both the Personal Holding Company

question 24

Multiple Choice

A corporation is subject to both the personal holding company tax and the accumulated earnings tax.Its regular taxable income is $200,000.Its adjusted taxable income for imposing the personal holding company tax is $170,000 and its taxable income for determining the accumulated earnings tax is $230,000.What is the corporation's total tax liability?

• A)$73,250
• B)$95,250
• C)$120,250
• D)$141,250

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Definitions:

Chromatid

One of the two identical halves of a duplicated chromosome, joined together at their centromeres before cell division.

Proteins

Large, complex molecules made up of amino acids that play essential roles in the body, including structural, enzymatic, and regulatory functions.

Hemolyzed

Refers to the bursting or destruction of red blood cells, leading to the release of hemoglobin into the surrounding fluid.

Crenated

Describes a process where cells, typically red blood cells, shrink due to osmosis, resulting in a notched or scalloped appearance.