Kee holding Corp. has eighty unrelated equal stockholders. For the year ended December 31, 2014, Kee's income comprised the following:
Net rental income : $1,000
Commissions earned on sales of franchises: $3,000
dividends from taxable domestic corporations: $90,000
Deductible expense from 2014 totaled $10,000. Kee paid no dividends for the past three years. Kee's liability for personal holding company tax for 2014 will be based on undistributed personal holding company income of
a. $12,000
b. $11,000
c. $9,000
d. $0
Answer: D
Tax
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