RGD Corporation was a C corporation from its inception in 2015 through 2019. However, it elected S corporation status effective January 1, 2020. RGD had $64,000 of earnings and profits at the end of 2019. RGD reported the following information for its 2020 tax year.
What amount of excess net passive income tax is RGD liable for in 2020? Assume the corporate tax rate is 21%.

Question

RGD Corporation was a C corporation from its inception in 2015 through 2019. However, it elected S corporation status effective January 1, 2020. RGD had $64,000 of earnings and profits at the end of 2019. RGD reported the following information for its 2020 tax year.
  What amount of excess net passive income tax is RGD liable for in 2020? Assume the corporate tax rate is 21%.

Quizplus · Accepted Answer

The Answer of RGD Corporation was a C corporation from its inception in 2015 through 2019. However, it elected S corporation status effective January 1, 2020. RGD had $64,000 of earnings and profits at the end of 2019. RGD reported the following information for its 2020 tax year.
  What amount of excess net passive income tax is RGD liable for in 2020? Assume the corporate tax rate is 21%.

RGD Corporation Was a C Corporation from Its Inception in 2015