Unformatted text preview: classified as a personal holding company are subject to the
underpayment of estimated tax penalty provision.
Choice "d" is incorrect. In determining the required amount of any installment (for estimated tax
purposes), a corporation must take into account its regular corporate income tax and the corporate
alternative minimum tax. CPA-02246 Type1 M/C 122. CPA-02246 A-D May 95 #23 Corr Ans: B PM#28 R 3-99 Page 39 Edge Corp. met the stock ownership requirements of a personal holding company. What sources of
income must Edge consider to determine if the income requirements for a personal holding company
have been met?
I. Interest earned on tax-exempt obligations.
II. Dividends received from an unrelated domestic corporation.
d. I only.
Both I and II.
Neither I nor II. CPA-02246
Choice "b" is correct. Personal holding company income consists of dividends received from an unrelated
domestic corporation. It does not include interest earned on tax-exempt obligations whic...
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- Fall '10
- The Land, Taxation in the United States, Educational Development Corp, Type1 M/C, Corr Ans