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:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental health conditions published by the American Psychiatric Association.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, often causing distress and difficulty in functioning.

Durham Rule

A legal standard for determining insanity, stating that an accused is not criminally responsible if the unlawful act was the product of mental disease or defect.

Insanity Defense

A legal defense by which a defendant claims they were unable to understand the nature or wrongfulness of their actions due to mental illness at the time of the criminal act.