An S Corporation with Substantial AEP Records Operating Revenues of $410,000

question 31

Multiple Choice

An S corporation with substantial AEP records operating revenues of $410,000, taxable interest income of $390,000, operating expenses of $260,000, and deductions attributable to the interest of $150,000. The passive income penalty tax payable, if any, is:

• A)$0.
• B)$40,923.
• C)$116,923.
• D)$136,500.

---

Definitions:

Shakers

A religious sect formally known as the United Society of Believers in Christ's Second Appearing, known for their communal living, celibacy, and simple lifestyle.

Sect

A relatively small group that has broken away from an established denomination within a religion.

Gender-Stereotyped

Referring to oversimplified and generalized beliefs about the characteristics, attributes, and behaviors of males or females.

Household Roles

The duties, responsibilities, and expectations assigned to members of a household, often based on age, gender, or relationships.