Identify Which of the Following Statements Is False

question 12

Multiple Choice

Identify which of the following statements is false.

• A) 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.
• B) Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI).
• C) The PHC tax is assessed at 20%.
• D) The 80% dividends- received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI).

Understand the factors affecting the firm's financial leverage and various methods of raising capital.

Understand the concepts of cash flows in a firm, including cash flow to stockholders and creditors.

Identify and calculate operating cash flow, capital spending, and net working capital.

Comprehend the difference between current assets, fixed assets, and the implications for net working capital.

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