Joined: 01 Dec 2009
Online Status: Offline Posts: 439
Posted: 08 Feb 2012 at 10:49 | IP Logged
gjtseng wrote:
Arbor Corp has 9 common stockholders. Arbor Corp derives all of its income from investments in stocks and securities, and regularly distributes 51% of its taxable income as dividends to its shareholders. Arbor is a?
The answer said "personal holding company"
My question is why? the book said at least 50% of shares owned by 5 or fewer shareholders.
The question is stating 9 stockholders, but doesn't specify what % of shares each owns. So, we'll have to assume they're equal, i.e. approximately 11% per shareholder. 11% times 5 shareholders equals 55%. Therefore, it meets the "more than 50%" requirement. It also derives all its income from passive activity and the minimum requirement is 60%. So, yes, they qualify as a personal holding company.
Joined: 21 May 2010 Location: United States
Online Status: Offline Posts: 91
Posted: 08 Feb 2012 at 10:50 | IP Logged
No doubt cpa#1 ,you are going to make it for sure this time...all that hard work would not go waste.....Like my husband always guesses my score before I take my exam(which is always close) I am guessing your score will be around 85 to 90,i know you just need a 75 but you can't help it...lol..,
__________________ BEC 81
FAR 75(GOD IS GREAT)
AUD 77
REG 79
Joined: 21 May 2010 Location: United States
Online Status: Offline Posts: 91
Posted: 08 Feb 2012 at 11:05 | IP Logged
cpa#1
How important is AMT??? there are very few questions in becker but a lot in wiley, I am scoring good with becker but not with wiley and simulations always scare me. what is your strategy for simulations and what kind of sims can we expect? I know it is always different but to just get an idea.
thank you
__________________ BEC 81
FAR 75(GOD IS GREAT)
AUD 77
REG 79
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