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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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