McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 45

Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative scenarios:
a.Passive investment income, $100,000; expenses associated with passiveinvestment income, $40,000; gross receipts, $120,000; taxable income if C corporation, $40,000; corporate E P, $30,000.b.Passive investment income, $100,000; expenses associated with passiveinvestment income, $70,000; gross receipts, $120,000; taxable income if C corporation, $1,200; corporate E P, $30,000.c.Passive investment income, $100,000; expenses associated with passive investment income, $40,000; gross receipts, $120,000; taxable income if C corporation, $40,000; corporate E P, $0.