RGD Corporation was a C corporation from its inception in 2013 through 2016.However,it elected S corporation status effective January 1,2017.RGD had $50,000 of earnings and profits at the end of 2016.RGD reported the following information for its 2017 tax year.
What amount of excess net passive income tax is RGD liable for in 2017? (Round your answer for excess net passive income to the nearest thousand).
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Compounded Annually
The process of adding interest to the principal sum of a loan or deposit once every year, resulting in exponential growth.
Annuity
A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.
Table Factors
Mathematical factors used in tables to simplify calculations for things like present values, loan repayments, or depreciation rates.
Present Values
The discounted value of an amount of money at a specific future date, considering a particular interest rate.
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