Question
Assume the following S corporations and gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due
Assume the following S corporations and gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.)
b. Hanson Corp.
| Gross | Passive Investment | Corporate Earnings | ||||
| Year | Receipts | Income | and Profits | |||
| 1 | $ | 1,431,500 | $ | 253,000 | $ | 138,889 |
| 2 | $ | 701,380 | $ | 206,000 | $ | 101,000 |
| 3 | $ | 850,350 | $ | 193,000 | $ | 101,000 |
| 4 | $ | 831,650 | $ | 216,000 | $ | 80,750 |
| 5 | $ | 1,001,685 | $ | 263,390 | $ | 80,750 |
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Employment, Hours, And Earnings 2010 States And Areas
Authors: Sarah E. Baltic
5th Edition
1598884190, 9781598884197
