80. Ace Corporation incurred the following taxes for the current year:B $254,000 = $187,000 + $67,000 81. What amount of accumulated earnings of a service type corporation is considered within the reasonable needs of a business without the corporation having to show a bona fide business reason for the accumulation? --> A $150,000 or less 82. Rohan, Inc., a calendar year closely held corporation, is not a PHC. If the company reports the following items, the accumulated taxable income is: A $44,550 83. Which of the following is alwayspersonal holding company income?84. Which statement is false? 85. Which entity is subject to the ACE provisions?86. Rose Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $700,000 for 2018. The company is nota small corporation. If the regular corporate tax is $85,000, Rose’s alternative minimum tax for 2018 is:Regular tax liability$187,000Tentative minimum tax156,000Personal holding company tax67,000Accumulated earnings tax61,300Taxable income$200,000Long-term capital gain (net of tax)18,300Federal income tax on LTCG11,700Dividends received deduction18,000Accumulated earnings credit90,000Federal income taxesTaxable income$200,000Plus: Dividends received deduction18,000$218,000Less: LTCG (net of tax)$18,300Federal income tax65,150Accumulated earnings credit90,000(173,450)Accumulated taxable income$ 44,550
87. Saffron Corporation, a calendar year taxpayer, has alternative minimum taxable income (before adjustment for adjusted current earnings) of $2 million for 2018. If Saffron Corporation's adjusted current earnings is $4 million, its tentativeminimum tax for 2018 is:88. Marker Corporation manufactures and sells birdhouses and feeders. The company also sells similar items that are imported from foreign countries. During the current year, Marker had a profit of $700,000 from its own products but a loss of $50,000 from the imported goods. A)What is Marker’s QPAI? B)What is Marker’s DPAD? 89. Mayberry, Inc. engages in production activities that generate QPAI of $460,000 and taxable income (without taking into account the DPAD and NOL) of $600,000 in 2017. The company also has an NOL carryover to 2017 of $500,000 and qualified W-2 wages of $300,000. Calculate any DPAD.