In each of the following four scenarios, determine whether the corporation is a personal holding company. Assume the corporation€™s outstanding stock is owned equally by three individuals.

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ttem nario 1 Scenario 2 Scenario 3 Scenario 4 Gross profit from sales $40,000 S 80,000 S40,000 S 60,000 Capital gains 10,000 5,000 10,000 Taxable interest income 15,000 15,000 10,000 20,000 Dividends received 10,000 10,000 2,000 Rental inc ome 80,000 150,000 Copyright royalties 5,000 80,000 Personal service income 100,000 30,000 Rent-related expenses Copyright-related expenses Dividends paid 20,000 25,000 8,000 10,000 5,000 10,000