Personal Holding Company Tax. Delta Corporation is being reorganized as an investment company…


Personal Encroachment Society Tax. Delta Corporation is being reorganized as an bombardment society consequently its retained hues feel been used for quiescent bombardments. The society is owned by three divideholders, and more than 60% of its proceeds is peculiar encroachment society proceeds. George, the president of Delta believes that peculiar encroachment society condition is not detrimental consequently the society has remunerated dividends to its divide - holders for several years and hence should not be restricted for any amercement tax. Delta reports the aftercited results for the prevalent year:

a. Do you coincide or discoincide delay George? Explain.

b. What is Delta 's peculiar encroachment society tax impost, if any, for the prevalent year?

c. How could Delta eschew impost for the peculiar encroachment society tax?