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

question 57

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 is:

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