Identify which of the following statements is true.
A)Beach Corporation, an S corporation, has gross receipts of $240,000; taxable income of $120,000; passive investment income of $100,000; and expenses directly attributable to the passive investment income of $20,000. The corporation's excess net passive income is $32,000.
B)The built-in gains tax applicable to S corporations can be avoided if the property is held for ten years.
C)An S corporation generally will not owe the built-in gains tax if the corporation has never been a C corporation.
D)All of the above are true.

Question

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The Answer of Identify which of the following statements is true.
A)Beach Corporation, an S corporation, has gross receipts of $240,000; taxable income of $120,000; passive investment income of $100,000; and expenses directly attributable to the passive investment income of $20,000. The corporation's excess net passive income is $32,000.
B)The built-in gains tax applicable to S corporations can be avoided if the property is held for ten years.
C)An S corporation generally will not owe the built-in gains tax if the corporation has never been a C corporation.
D)All of the above are true.

Identify Which of the Following Statements Is True