Which of the following S corporations would be subject to the excess net passive income tax?
A)An S corporation that never operated as a C corporation.
B)An S corporation that has previously distributed all earnings and profits from prior C corporation years.
C)An S corporation with no earnings and profits from prior C corporation years and with passive investment income that exceeds 30percent of its gross receipts.
D)An S corporation with $2,000 of earnings and profits from prior C corporation years and with passive investment income that equals 22percent of its gross receipts.
E)None of the choices are correct.

Question

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The Answer of Which of the following S corporations would be subject to the excess net passive income tax?
A)An S corporation that never operated as a C corporation.
B)An S corporation that has previously distributed all earnings and profits from prior C corporation years.
C)An S corporation with no earnings and profits from prior C corporation years and with passive investment income that exceeds 30percent of its gross receipts.
D)An S corporation with $2,000 of earnings and profits from prior C corporation years and with passive investment income that equals 22percent of its gross receipts.
E)None of the choices are correct.

Which of the Following S Corporations Would Be Subject to the Excess