Which of the following S corporations would be subject to the excess net passive income tax?

Multiple Choice

• An S corporation that never operated as a C corporation.
• An S corporation that has previously distributed all earnings and profits from prior C corporation years.
• An S corporation with no earnings and profits from prior C corporation years and with passive investment income that exceeds 30% of its gross receipts.
• An S corporation with $2,000 of earnings and profits from prior C corporation years and with passive investment income that equals 22% of its gross receipts.
• None of the choices are correct.