1. What ls Gerald Germain's basls In an S corporatlon assumlng he is the sole shareholder and hls capltal account has a balance of $15,000, the corporation has $5,000 In hablitdes, $2,000 In prevloudly taxed Income, and $1,000 In accumulated earnings and profitst a. $23,000 b. $22,000 c. $18,000 d $17,000 e. None of the above 2. What is the only credit ellowed against the tax on passive Investment Income? Dependent care credt Investment credlt General business credlt Credit for special fuels Business energy credies s. b. c. d. e. 3. Pasive Investment Income Includes all excepr a. Interest b. Sales or exchanges of stock or securitles Rents d. Interest on defetred payment sales of property held for.,pale to customers c. 4. S corporation corporate level elections Include all except . S electlon and/or change of accounting method b. Electlon out of the Installment sales provlslon Deductlon and recapture of certaln mlnlng exploration expenses c. d. Inventory valuation Which of the followlng is nota separately stared Item S. the Income computation of an S corporatlon? Long-term capital galn b. Charltable contrlbutions c. Interest Income d. Section 179 expense e. General business credit