23. Passive Investment Income Includes gross recelpts derlved from royaltles, rents, dividends, Interest, and annultles does not Include Interest on any obligation acquired In the ordinary course of the corporation's trade or business or from Its sale of Inventory. does not Include any recognized bullt-In galn or los of the S corporntion for any tax year during the recognltion perlod. All of the above. a. b. c. d. t. The recognized galn Is allocated pro rata to ls shareholders, thereby Imposinga tax on the galn at the b. The bullt-In gains tax prevents an S corporatlon from escaping tnx at the entity-level for unreallzed galns from 24. Whlch of the following statements about the bulle-in galns tax is true? shareholder-level. rlods during Its eariler years as aC corporatlon. c. Only amounts of appreclation generated duringa corporntlon's exlstence as a C corporatlon are subject to he bullt-In galns tax d. All of the above 25 The LIPO recapture amount ls the diference between: the smount of the corporation's Inventory assets under the retall method and the amount of the corporation's Inventory assets under the LIPO method. b. the amount of the corporatlon's Inventory assets under the PIPO method and the amount of the corporations Inventory assets under the LIFO method. c the amount of the corporntion's Inventory sses and fair market value d. None of the above