Question # 6

Data Table Item Scenario 1 Scenario 2 Scenario 3 Scenario 4 $ 55,000 $ 0 10,000 8,000 140,000 30,000 $ 7,000 12,000 4,000 0 85,000 7,000 26,000 0 0 Gross profit from sales Capital gains Taxable interest income Dividends received Rental income Copyright royalties Personal service income Rent-related expenses Copyright-related expenses Dividends paid 55,000 $ 12,000 25,000 8,000 120,000 2,000 0 15,000 0 15,000 0 0 130,000 0 0 60,000 0 0 10,000 0 4,000 0 45,000 4,000 6,000 On Print Done Assume the following four scenarios: (Click the icon to view the scenarios.) Requirement In each of the four scenarios, determine whether the corporation is a personal holding company. Assume the corporation's outstanding stock is owned equally by three individuals. - For each scenario, calculate the adjusted ordinary gross income (AOGI), the personal holding company income (PHCI), and the PHC as a percent of AOGI. Then determine whether the corporation is a personal holding company. (Complete all answer boxes. Enter "0" for zero amounts. Round percentages to one decimal place, X.X%.) Scenario 1 Scenario 2 Scenario 3 Scenario 4 Gross income Minus: Ordinary gross income (GI) Minus: Adjusted ordinary gross income (AOGI) PHC income (PHCI) PHC as a percent of AOGI PHC? % % % % Data Table Item Scenario 1 Scenario 2 Scenario 3 Scenario 4 $ 55,000 $ 0 10,000 8,000 140,000 30,000 $ 7,000 12,000 4,000 0 85,000 7,000 26,000 0 0 Gross profit from sales Capital gains Taxable interest income Dividends received Rental income Copyright royalties Personal service income Rent-related expenses Copyright-related expenses Dividends paid 55,000 $ 12,000 25,000 8,000 120,000 2,000 0 15,000 0 15,000 0 0 130,000 0 0 60,000 0 0 10,000 0 4,000 0 45,000 4,000 6,000 On Print Done Assume the following four scenarios: (Click the icon to view the scenarios.) Requirement In each of the four scenarios, determine whether the corporation is a personal holding company. Assume the corporation's outstanding stock is owned equally by three individuals. - For each scenario, calculate the adjusted ordinary gross income (AOGI), the personal holding company income (PHCI), and the PHC as a percent of AOGI. Then determine whether the corporation is a personal holding company. (Complete all answer boxes. Enter "0" for zero amounts. Round percentages to one decimal place, X.X%.) Scenario 1 Scenario 2 Scenario 3 Scenario 4 Gross income Minus: Ordinary gross income (GI) Minus: Adjusted ordinary gross income (AOGI) PHC income (PHCI) PHC as a percent of AOGI PHC? % % % %