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An S corporation may owe tax if, at the end of the tax year, the corporation had accumulated earnings and profits and taxable income

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An S corporation may owe tax if, at the end of the tax year, the corporation had accumulated earnings and profits and taxable income and if A. Its foreign source income exceeds 25% of its gross receipts. B. Its tax preference items exceed 25% of its gross receipts. C. Its passive investment income exceeds 25% of its gross receipts. D. All of the answers are correct.

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