Neal Corporation was initially formed as a C corporation with a calendar year end. Neal elected S corporation status, effective January 1, 2012. On December 31, 2011, Neal Corp. reported earnings and profits of $150,000. Beginning in 2012, Neal Corp. reported the following information. Does Neal Corp.'s S election terminate due to excess net passive income? If so, what is the effective date of the terminations?

year	gross receipts (including passive investment income)	passive investment income	corporate earnings and profits (end of year)
2012	$400,000	$120,000	$140,000
2013	$300,000	$70,000	$100,000
2014	$500,000	$130,000	$70,000
2015	$400,000	$110,000	$40,000
2016	$600,000	$155,000	$1,000