Problem $11-47($LO $11-2)($Algo$)$

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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

$1$ $ $1,354,458$ $ $255,000$ $ $321,900$

$21,231,189105,000321,900$

$31,141,218305,000232,000$

$41,348,287355,000101,200$

$51,501,380405,0000$