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

Clampett, Inc. has never operated as a C corporation, so it is not subject to the excess net passive income tax, which applies to S corporations with accumulated earnings and profits from when they were C corporations.

Assume That Clampett,Inc