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However rental income received in advance

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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. a. b. c. d. I only. II only. Both I and II. Neither I nor II. CPA-02246 Explanation 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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