Assume the following S corporations, 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.)

Problem 22-47 Part a (Algo)

a. Clarion Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,357,458	$ 270,000	$ 323,700
2	1,233,589	120,000	323,700
3	1,146,690	320,000	238,000
4	1,352,031	370,000	104,800
5	1,504,500	420,000	0

Would the S election be terminated?

b. Hanson Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,434,800	$ 266,200	$ 140,759
2	703,580	219,200	103,200
3	853,320	199,600	103,200
4	835,280	229,200	82,400
5	1,004,545	276,590	82,400

Would the S election be terminated?

c. Tiffany Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,005,898	$ 264,400	$ 0
2	707,000	314,880	0
3	803,335	414,770	0
4	902,450	364,870	0
5	678,000	304,777	0

Would the S election be terminated?

d. Jonas Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,105,010	$ 266,000	$ 740
2	998,800	248,000	640
3	802,750	246,000	540
4	807,000	230,570	440
5	754,800	216,000	340

Would the S election be terminated?