Essay
Neal Corporation was initially formed as a C corporation with a calendar year-end. Neal elected S corporation status, effective January 1, 2020. On December 31, 2019, Neal Corporation reported earnings and profits of $150,000. Beginning in 2020, Neal Corporation reported the following information. Does Neal Corporation's S election terminate due to excess net passive income? If so, what is the effective date of the termination?
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The S election is terminated at the end ...View Answer
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