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 a (Algo)

a. Clarion Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,358,208	$ 273,750	$ 324,150
2	1,234,189	123,750	324,150
3	1,148,058	323,750	239,500
4	1,352,967	373,750	105,700
5	1,505,280	423,750	0

b. Hanson Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,435,700	$ 269,800	$ 141,269
2	704,180	222,800	103,800
3	854,130	201,400	103,800
4	836,270	232,800	82,850
5	1,005,325	280,190	82,850

c. Jelena Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,006,918	$ 267,100	$ 0
2	707,750	317,580	0
3	803,890	417,470	0
4	902,840	367,570	0
5	679,500	307,477	0

d. Nazmul Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,105,880	$ 269,000	$ 785
2	998,950	249,500	685
3	803,200	249,000	585
4	807,750	233,570	485
5	755,700	219,000	385