1. Rohan, Inc., a calendar year closely held corporation, is not a PHC. If the c
ID: 2611673 • Letter: 1
Question
1. Rohan, Inc., a calendar year closely held corporation, is not a PHC. If the company reports the following items, the accumulated taxable income is:
2. 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.$250,000 or less.
b.$300,000 or less.
c.$150,000 or less.
d.$200,000 or less.
e.None of these choices are correct.
Taxable income $200,000 Long-term capital gain (net of tax) 18,300 Federal income tax on LTCG 11,700 Dividends received deduction 18,000 Accumulated earnings credit 90,000 Federal income taxes 65,150Explanation / Answer
1)
$ 44550
2) $250,000 or less.
... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.