In the current year, Maxwell Corporation is deemed to be a PHC and reports the following results:

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Taxable income	$175,000
Dividend received from an 18%-owned domestic corporation	40,000
Dividends paid	80,000

CORPORATIONS
If Taxable Income Is:			The Tax Is:
Over-	But Not Over-					Of the Amount Over-
$0	$50,000				15%	$0
50,000	75,000		$7,500	+	25%	50,000
75,000	100,000		13,750	+	34%	75,000
100,000	335,000		22,250	+	39%	100,000
335,000	10,000,000		113,900	+	34%	335,000
10,000,000	15,000,000		3,400,000	+	35%	10,000,000
15,000,000	18,333,333		5,150,000	+	38%	15,000,000
18,333,333			6,416,667	+	35%	18,333,333

Requirement a. What is Maxwell's regular tax liability (ignoring any AMT implications)?

Requirement b. What is Maxwell's PHC tax liability?

Begin by computing the undistributed personal holding company income (UPHCI). Then compute Maxwell's PHC tax liability. (Enter tax rate in decimal form, 0.XX. Round your answer to the nearest whole dollar.)

Taxable Income
Plus:	Dividends-received deduction
Minus:	Federal income taxes
	Dividends-paid deduction
Undistributed personal holding company income (UPHCI)
Times:	Tax rate
Personal Holding Company tax

Requirement c. What measures can Maxwell take to eliminate its PHC tax liability after year-end and before it files its tax return? After it files its tax return?