Choice "A" is correct. A corporation is a personal holding company (PHC) if (1) at any time during the last half of the taxable year more than 50% of the value of the outstanding stock is owned by 5 or fewer individuals, and (2) at least 60% of its adjusted ordinary gross income for the year is investment-type income.
Choice "c" is incorrect. A PHC is subject to the regular tax on corporate income as well as a 15% tax on its undistributed PHC income.
Choice "d" is incorrect. As a personal holding company, Acme is not subject to the accumulated earnings tax.
Choice "b" is incorrect. A regulated investment company must be registered under the Investment Company Act of 1940 or file an election to be a regulated investment company.