47. Assume the following S corporations and gross receipts, passive investment income, and corporate E&P. 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.

a. Clarion Corp.

Year Gross Receipts Passive Investment Income Corporate Earnings and Profits 1 $1,353,458 $250,000 $321,300 2 1,230,389 100,000 321,300 3 1,139,394 300,000 230,000 4 1,347,039 350,000 100,000 5 1,500,340 400,000 0

b. Hanson Corp.

Year Gross Receipts Passive Investment Income Corporate Earnings and Profits 1 $1,430,000 $247,000 $138,039 2 700,380 200,000 100,000 3 849,000 190,000 100,000 4 830,000 210,000 80,000 5 1,000,385 257,390 80,000

c. Tiffany Corp.
Year Gross Receipts Passive Investment Income Corporate Earnings and Profits 1 $1,000,458 $250,000 $0 2 703,000 300,480 0 3 800,375 400,370 0 4 900,370 350,470 0 5 670,000 290,377 0

d. Jonas Corp.
Year Gross Receipts Passive Investment Income Corporate Earnings and Profits 1 $1,100,370 $250,000 $500 2 998,000 240,000 400 3 800,350 230,000 300 4 803,000 214,570 200 5 750,000 200,000 100