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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.

a. Clarion Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings & Profits
1	$1,355,708	$261,250	$322,650
2	1,232,289	111,250	322,650
3	1,143,498	311,250	234,500
4	1,349,847	361,250	102,700
5	1,502,680	411,250	0

a. Would the S election be terminated?

Yes or No?

When? N/A, Year 1, Year 2, Year 3, Year 4,Year 5, or Year 6?

b. Hanson Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,432,700	$ 257,800	$ 139,569
2	702,180	210,800	101,800
3	851,430	195,400	101,800
4	832,970	220,800	81,350
5	1,002,725	268,190	81,350

b. Would the S election be terminated?

Yes or No?

When? N/A, Year 1, Year 2, Year 3, Year 4,Year 5, or Year 6?

c. Jelena Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,003,518	$ 258,100	$ 0
2	705,250	308,580	0
3	802,040	408,470	0
4	901,540	358,570	0
5	674,500	298,477	0

c. Would the S election be terminated?

Yes or No?

When? N/A, Year 1, Year 2, Year 3, Year 4,Year 5, or Year 6?

d. Nazmul Corporation

Year	Gross Receipts	Passive Investment Income	Corporate Earnings and Profits
1	$ 1,102,980	$ 259,000	$ 635
2	998,450	244,500	535
3	801,700	239,000	435
4	805,250	223,570	335
5	752,700	209,000	235

d. Would the S election be terminated?

Yes or No?

When? N/A, Year 1, Year 2, Year 3, Year 4,Year 5, or Year 6?