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Pepper Inc., an S Corporation that has C years E&P, has gross receipts of $780,000 ($400,000 from operating income and taxable interest of $380,000), operating

Pepper Inc., an S Corporation that has C years E&P, has gross receipts of $780,000 ($400,000 from operating income and taxable interest of $380,000), operating income expenses of $250,000 and deductions attributable to the interest income of $140,000 during the current year. Calculate any 1375 penalty tax that this corporation must pay.

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