Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.) Problem 11-47 Part a (Algo) a. Clarion Corporation Passive Investment Corporate Earnings and Profits $ 321, 900 321, 900 232, 000 101, 200 Year Gross Receipts $ 1, 354, 458 1, 231, 189 1, 141, 218 1, 348, 287 1, 501, 380 Income $ 255, 000 105, 000 305, 000 355, 000 405, 000 1 2 3 4 Would the S election be terminated?

Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.) Problem 11-47 Part a (Algo) a. Clarion Corporation Passive Investment Corporate Earnings and Profits $ 321, 900 321, 900 232, 000 101, 200 Year Gross Receipts $ 1, 354, 458 1, 231, 189 1, 141, 218 1, 348, 287 1, 501, 380 Income $ 255, 000 105, 000 305, 000 355, 000 405, 000 1 2 3 4 Would the S election be terminated?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter15: S Corporations

Section: Chapter Questions

Problem 11P

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