A Corporation Is Subject to Both the Personal Holding Company

question 20

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
• E)None of the above

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Definitions:

Unconscionable

A term describing actions or terms that are so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.

Express Warranty

An explicit guarantee by the seller about the condition or quality of a product.

Utilitarian Test

A principle in ethics that evaluates actions based on their outcomes, aiming for the greatest good for the greatest number.

Negligent

failing to take proper care in doing something, often resulting in harm or damage.