Mullins Corporation is classified as a PHC for the current year, reporting $263,000 of taxable income on its federal income tax return:

Operating profit $150,000

Long-term capital gain 20,000

Short-term capital gain 20,000

Dividends (from 25%-owned domestic corporation)200,000

Interest 150,000

Gross income $540,000

Minus: general and administrative expenses( 40,000)

Minus: salaries ( 30,000)

"Adjusted" taxable income $470,000

Minus: charitable contributions ( 47,000)

Taxable income before special deductions$423,000

Minus: dividends-received deduction (160,000)

Taxable income $263,000

Actual charitable contributions made by Mullins Corporation were $75,000. What are the federal income tax due and the personal holding company (PHC) tax liability? Discuss the methods (if any) by which payment of the PHC tax can be avoided.