In the current year, Kennedy Corporation is deemed to be a PHC and reports the following results: 

Taxable income . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000

Federal income taxes .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000

Dividends paid in the fifth month of the current year . . . . . . 75,000

The following information is available:

• The corporation received $100,000 of dividends from a 25%-owned domestic corporation.

• The corporation received $30,000 of tax-exempt interest income. 

• The corporation recognized a $175,000 Sec. 1231 gain on the sale of land. 

a. What is Kennedy's PHC tax liability? 

b. What measures can Kennedy take to eliminate the PHC tax liability after year-end and before Kennedy files its tax return? After Kennedy files its tax return?