Identify Which of the Following Statements Is False

question 47

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 15%.

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Definitions:

Total Assets

The total value of everything a company owns, both current and non-current, recorded on the balance sheet.

Fixed Assets

Tangible assets purchased for long-term use in the operation of a business, not expected to be converted quickly into cash.

Long-term Debt

Financial obligations of a company payable over a period exceeding twelve months, often used for major investments or acquisitions.