Kane Corp. is a calendar year domestic personal holding company. Which deduction(s) must Kane make from Year 1 taxable income to determine undistributed personal holding company income prior to the dividend-paid deduction?
Federal income taxes
Net long-term capital gain less related federal income taxes
Choice "B" is correct. A personal holding company deducts federal income taxes in computing undistributed personal holding company income. A personal holding company deducts net long-term capital gain less related federal income taxes in computing undistributed personal holding company income.
Choices "a", "d", and "c" are incorrect, per the above explanation.
