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Excess net passive income of an S-corporation is $40,000 and taxable income is $32,000. Assuming that there is $50,000 of accumulated earnings and profits from

Excess net passive income of an S-corporation is $40,000 and taxable income is $32,000. Assuming that there is $50,000 of accumulated earnings and profits from a C-corporation year, calculate any passive income penalty tax.

$0

$4,500

$10,500

$11,200

None of the above

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