Your client is facing a possible personal holding company tax or accumulated earnings tax in 2017. Advise the client as to the total tax due and what the effective tax rate will be for this manufacturing company based on these facts:
Taxable income................................................$522,000
Dividends received deduction..................................47,000
Accumulated earnings credit....................................36,100
Dividends paid....................................................38,000
Federal income taxes............................................177,480
Excess charitable contributions.................................23,400