RGD Corporation was a C corporation from its inception in 2013 through 2017. However, it elected S corporation status effective January 1, 2018. RGD had $50,000 of earnings and profits at the end of 2017. RGD reported the following information for its 2018 tax year.

What amount of excess net passive income tax is RGD liable for in 2018? Assume the corporate tax rate is 21%. (Round your answer for excess net passive income to the nearest thousand).

Question

RGD Corporation was a C corporation from its inception in 2013 through 2017. However, it elected S corporation status effective January 1, 2018. RGD had $50,000 of earnings and profits at the end of 2017. RGD reported the following information for its 2018 tax year.
  
What amount of excess net passive income tax is RGD liable for in 2018? Assume the corporate tax rate is 21%. (Round your answer for excess net passive income to the nearest thousand).

Quizplus · Accepted Answer

The Answer of RGD Corporation was a C corporation from its inception in 2013 through 2017. However, it elected S corporation status effective January 1, 2018. RGD had $50,000 of earnings and profits at the end of 2017. RGD reported the following information for its 2018 tax year.
  
What amount of excess net passive income tax is RGD liable for in 2018? Assume the corporate tax rate is 21%. (Round your answer for excess net passive income to the nearest thousand).

RGD Corporation Was a C Corporation from Its Inception in 2013