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Unformatted text preview: Undistributed PHCI-before Div. 173,750 -Current year dividends 75,000 -Consent dividends-2-1/2-month-dividends (75,000) = Undistributed PHC Income 98,750 X Tax Rate 15% = PHC tax liability $14,813 1 Charitable contributions are limited to 10% of adjusted taxable income for regular tax purposes, but the limit does not apply for PHC computations. Additional current year contributions may be allowed for PHC tax purposes, but regular tax contribution carryforwards are eliminated if they were deducted for PHC tax purposes in a prior year. 2 Capital gains are reduced by related income taxes to prevent a double benefit from those taxes. 3 This worksheet does not show all adjustments that may be necessary...
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.
- Spring '08