Identify which of the following statements is true.

A) The personal holding company tax is levied to prevent closely held corporations from sheltering passive income.

B) Luke Corporation is owned by a father and his son. The corporation employs 10 individuals to provide public accounting services. Father and son make all of the work assignments forthe professional employees. The professional fees earned by the corporation are personal holding company income.

C) Caleb Corporation is owned by a mother and her two daughters. It reports $100,000 of rental income, $30,000 of depreciation, interest, and property taxes on the rental real estate, and$10,000 of dividend income. Caleb Corporation is classified as a personal holding company.

D) All of the above are false.

Answer rating: 100% (QA)

Solution Correct answer is A The personal holding company tax is ... View the full answer