Identify Which of the Following Statements Is False

question 1

Multiple Choice

Identify which of the following statements is false.

• A)The 80% dividends-received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI).
• B)Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI).
• C)Wind Corporation is a personal holding company. Its taxable income for this year is $100,000. The corporation's charitable contributions are $5,000 greater than its income tax charitable contribution deduction limitation. Wind's UPHCI is $95,000, assuming no other adjustments must be made.
• D)The PHC tax is assessed at 20%.

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Definitions:

Petition

A petition is a formal written request, often signed by many people, appealing to authority in respect of a particular cause.

Articles of Confederation

The Articles of Confederation was the first constitution of the United States, in effect from 1781 to 1789, that provided a loose federation of sovereign states and a weak central government.

Voluntary Association

An organization formed by individuals who voluntarily come together to pursue common interests or goals.

Independent States

Sovereign entities that have control over their own territory, with the power to make and enforce laws, and engage in relations with other states.