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6000 contribution to a recognized qualified charity

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Unformatted text preview: nal holding company. Regulated investment company. Corporation subject to the accumulated earnings tax. Corporation subject to tax only on income not distributed to stockholders. CPA-02207 Explanation Choice "a" is correct. Personal holding company. Rule: Personal holding company status applies if a corporation is owned more than 50% by five of fewer individuals at any time during the last half of the tax year and if at least 60% of adjusted ordinary gross income for the tax year is personal holding company income (which would include income from investments in stocks and securities). Choice "b" is incorrect. A regulated investment company is a corporation that is registered under the Investment Company Act of 1940 and some venture capital companies. In order to qualify as a regulated investment company, at least 90% of its gross income must be qualified investment source income. It must distribute currently at least 90% of its dividend and interest income. The benefit of...
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