Because of its quality investments, Carolina Corporation has always generated 30% to 40% of its gross income from passive sources. In the current year, Carolina sold a block of stock in a company it acquired several years ago. As a result of the sale, the corporation realized a substantial long-term capital gain that will increase this year’s investment income from 40% to 70% of gross income. Explain to Carolina’s president why she should or should not be worried about the personal holding company tax.