Alice and Barry own all the shares of Alpha Corporation. For the current year, the corporation reports the following income and expenses:

During the current year, Alpha Corporation paid $50,000 in dividends to its shareholders. Assume Alpha is not eligible for the U.S. production activities deduction.
a. Is Alpha a personal holding company?
b. What is Alpha€™s regular tax liability?
c. What is Alpha€™s personal holding company tax liability (if any)?

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Rental inc ome S 750,000 Dividend income from less than 20%-owned corporations Tax-exempt interest income Gross profit on sale of merchandise Long-term capital gain on the sale of stocks 200,000 40,000 50,000 200,000 S1,240,000 Total income Minus: Rent related expenses; Interest expense $140,000 Depreciation expense 150,000 Property taxes 175,000 Other Sec. 162 expenses 165.000 (630,000) Minus: Administrative expenses 190,000) Pre-tax profit