Business, 24.10.2019 05:00 mathiscool7

Because of its quality investments, carolina corporation has always generated 30% to 40% of its gross income from passive sources. in the current year, carolina sold a block of stock in a company it acquired several years ago. as a result of the sale, the corporation realized a substantial long-term capital gain that will increase this year's investment income from 40% to 70% of gross income. explain to carolina's president why she should or should not be worried about the personal holding company tax. (assume that the stock ownership requirement is met.)

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