The following information pertains to Hull, Inc., a personal holding company, for the year ended December 31, 2007:

Undistributed personal holding company income

$100,000

Dividends paid during 2007

20,000

Consent dividends reported in the 2007 individual income tax returns of the holders of Hull’s common stock, but not paid by Hull to its stockholders

10,000

In computing its 2007 personal holding company tax, what amount should Hull deduct for dividends paid?

  1. $0
  2. $10,000
  3. $20,000
  4. $30,000