For the current tax year, Cuddle Corporation's $500,000 of taxable income is all considered to be personal holding company income. The corporation did not pay dividends. Which of the following statements is true?

Multiple Choice

• The corporation will owe a personal holding company tax of $105,000.

• The corporation will owe a regular tax of $100,000.

• The corporation's total tax liability will be $210,000.

• The corporation's total tax liability will be $200,000.