7.Homebound, Inc. reported the following results:

Gross Income From Sales$50,000

Salaries20,000

Overhead25,000

Capital Gains200,000

N.O.L. from previous year30,000

Dividends from U.S. Sources40,000

Tax-exempt interest10,000

Taxable Interest35,000

Income Taxes Paid (Including $59,650 on capital gains)62,050

If the corporation has only four individual shareholders, compute the following:

a.Adjusted ordinary gross income

b.Personal holding company income

c.Undistributed personal holding company income

d.Current dividend required to avoid personal holding company tax.

e.What impact would it have if taxable interest was only $12,000 and there was no NOL carryover?