Question - Martial aids Inc. reported the following results last year
Gross income from sales $50,000
Salaries $20,000
Overhead $25,000
Capital Gains $200,000
NOL from Prev Yr $30,000
Dividends from U.S. Sources $40,000
Tax-exempt interest $35,000
Taxable interest $35,000
Income tax paid (incl $59,650 on capital gains) $62,050
If the corporation has only four individual shareholders, compute the following:
a. Adjusted ordinary gross income
b. Personal holding company income
c. Undistributed personal holding company income
d. Current dividend required to avoid personal holding company tax
e. What impact would it have if taxable interest was only $12,000 and there was no NOL carryover?