Excess Net Passive Income of an S Corporation Is $40,000

question 102

Multiple Choice

Excess net passive income of an S corporation is $40,000 and taxable income is $32,000.Assuming that there is $50,000 of accumulated earnings and profits from a C corporation year,calculate any passive income penalty tax.

• A)$0.
• B)$4,500.
• C)$10,500.
• D)$11,200.
• E)Some other amount.

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