Assume that Clampett, Inc. has $200,000 of sales, $150,000 of cost of goods sold,$60,000 of interest income, and $40,000 of dividends. Assume that Clampett, Inc. never operated as a C corporation and that the corporate tax rate is 35%. What is Clampett,Inc.'s excess net passive income tax?

Question

Quizplus · Accepted Answer

Excess net passive income tax is only applicable to C corporations. Since Clampett, Inc. never operated as a C corporation, it does not owe any excess net passive income tax.

Assume That Clampett, Inc