RGD Corporation Was a C Corporation from Its Inception in 2015

question 38

Essay

RGD Corporation was a C corporation from its inception in 2015 through 2019. However, it elected S corporation status effective January 1, 2020. RGD had $64,000 of earnings and profits at the end of 2019. RGD reported the following information for its 2020 tax year.
What amount of excess net passive income tax is RGD liable for in 2020? Assume the corporate tax rate is 21%.

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Definitions:

Visual Résumé

A visual résumé presents an individual's professional background and skills through creative and graphical elements, such as charts, images, and infographics, rather than through a traditional text-based format.

Work History

A record of an individual's employment background, including positions held, duration of employment, and sometimes responsibilities and achievements.

Cover Messages

Brief communications, often accompanying another document like a résumé or report, intended to introduce the material and highlight its significance.

Sequential Interview

An interview process involving multiple stages, where candidates meet with different stakeholders in a sequence, typically used to gain various perspectives before making a hiring decision.