LO.8 Lejeune, Inc., an S corporation in Boone, North Carolina, reports operating revenues of $400,000, taxable interest of $380,000, operating expenses of $250,000, and deductions attributable to the interest income of $140,000. Lejeune’s accumulated E & P amounts to $2 million. Calculate any penalty tax payable by Lejeune or its shareholders.

I S SUE ID COMMUNICATIONS