Quiz Chapter C5 Quiz Submit Qui This Question 1 pt 7 of 7 3

Quiz: Chapter C:5 Quiz Submit Qui This Question: 1 pt 7 of 7 (3 complete) This Quiz: 7 pts possil Which of the following income items, when received by a corporation, are included in personal holding company income (PHCI)? Indicate whether any special circumstances would exclude an income item that is generally includible in PHCI 1 (Click the icon to view the income items.) More Info Income items Included or excluded in PHCI a. Dividends (out of E&P;) b. Interest on a corporate bond c. Interest on a general revenue bond issued by a state government d. Rental income from a warehouse leased to a third party e. Rental income from a warehouse leased to the corporation\'s sole shareholder f. Royalty income on a book whose copyright is owned by the corporation g. Royalty income on a computer software copyright developed by the C. corporation and leased to a software marketing firm Accounting fees earned by a professional corporation owned by three equal shareholders, which offers public accounting services to various clients Long-term capital gain on the sale of a stock investment h. i. Print Done Choose from any drop-down list and then continue to the next question. O Type here to search

Solution

excluded in following cases:-

when interest received on rent

when interest received on amounts set aside as reserve.

interest received by a stock or a dealer.

conditions are as follows:-

1.25% of the stock value is directly or indirectly owned by the person who has performed the services.

2.person who has performed the services is designated to do so.

items	treatment	special circumstances
dividends (out of e&p)	included	excluded when received from a controlled foreign corporation.
interest on a corporate bond	included	excluded in following cases:- when interest received on rent when interest received on amounts set aside as reserve. interest received by a stock or a dealer.
rental income from a warehouse leased to a third party	included	exempted when special exemption applies to corporations.
royalty income from a book	included	included for the use of intangible assets.
long term capital gain on the sale of stockinvestment	excluded
accounting fees earned by a professional corporation.	included if two conditions are ,met	conditions are as follows:- 1.25% of the stock value is directly or indirectly owned by the person who has performed the services. 2.person who has performed the services is designated to do so.