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Assume the following S corporations, gross receipts, passive investment income, and corporate earnings and profit. Will any of these corporations have its S election terminated

Assume the following S corporations, gross receipts, passive investment income, and corporate earnings and profit. 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.

Note: Leave no answer blank. Select "NA" if no effect.

Problem 11-47 Part c (Algo)

c. Jelena Corporation

Year Gross Receipts Passive Investment Income Corporate Earnings and Profits
1 $ 1,008,278 $ 270,700 $ 0
2 708,750 321,180 0
3 804,630 421,070 0
4 903,360 371,170 0
5 681,500 311,077

0

Would the S election be terminated? (yes/no)

What year?

-N/a

-Year 1

-Year 2

-Year 3

-Year 4

-Year 5

-Year 6

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