27. A corporation that elected S status in 202 has C corporation earnings and profits of $50,000 from its C corporation years. During 205 the corporation's gross receipts are $120,000, which include $75,000 of interest income. Expenses related to the interest income are $10,000. The corporation's excess passive investment income would be: a. $45,000 b. $35,000 c. $39,000 d. $20,000 29. On January 1, 20X6, an S corporation has accumulated E\&P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000. The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000. During 206, the corporation reports ordinary income of $10,000 and a $20,000 long-term capital gain. During 206, the corporation distributes $65,000 to Betty. The amount of the distribution that represents a taxable dividend is: a. $0. b. $20,000. c. $50,000. d. $55,000. 30. On January 1, 20X6, an S corporation has accumulated E\&P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000. The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000. During 206, the corporation reports ordinary income of $10,000 and a $20,000 long-term capital gain. During 206, the corporation distributes $65,000 to Betty. The balance in the corporation's accumulated E\&P at the end of 206 is: a. $0. b. $5,000. c. $35,000. d. $55,000