Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 11-47 (LO 11-2) (Algo)
[The following information applies to the questions displayed below.]
Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these
corporations have its S election terminated due to excessive passive income? If so, in what year? All became S
corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.)
Problem 11-47 Part c (Algo)
c. Tiffany Corporation
Corporate
Earnings and
Passive
Year
Gross Receipts Investment Income
$ 253, 600
304, 080
403, 970
354, 070
293, 977
Profits
$ 1, 001, 818
704, 000
801, 115
900, 890
672, 000
$ 0
2
3
4
5
Would the S election be terminated?
Transcribed Image Text:Required information Problem 11-47 (LO 11-2) (Algo) [The following information applies to the questions displayed below.] Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.) Problem 11-47 Part c (Algo) c. Tiffany Corporation Corporate Earnings and Passive Year Gross Receipts Investment Income $ 253, 600 304, 080 403, 970 354, 070 293, 977 Profits $ 1, 001, 818 704, 000 801, 115 900, 890 672, 000 $ 0 2 3 4 5 Would the S election be terminated?
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