5 Askalu Habtom | 04/19/21 10:47 vork: Chapter 1:16 Homework Score: 0.33 of 1 pt 2 of 10 (2 complete HW Score: 13.33% 1 33 of 10 PI:16-46 (similar to) Question Help Hosta Corporation is being reorganized as an investment company because its retained earrings have been used for pansive investments. The company is cured by three shareholders, and more than 60% of its income is personal holding company income Dale, the president of Hosta believes that personal holding country not detrimental because the company has paid dividends to its shareholders for several years and therefore should not be liable for any pera y te Click the icon to view Hosta's results for the current year) Read the requirements Requirement c. How could Hosta avoid liability for the personal holding company tax? (Select for that apply) A. Starting a second company that becomes the major shareholder of Hosta Corporation aliowing only the dividends currently paid to fow tough the w company B. A payment of significant dividends to reduce or eliminate the $106.970 tax base. C. By keeping taxable income below $250,000, Hosta Corporation will be able to avoid any tability for the personal holding company to D. Falling to meet the stock ownership test by making changes in shareholder ownership amounts (For example, by oiling stock to people want to the three current shareholders.) E. Having additional family members Join the corporation so the company can distributo dividenda to more than three shareholders Click to select your answer(s) and then click Check Answer All parts showing Step-by-step solution Clear All here to search o