Essay
RGD Corporation was a C corporation from its inception in 2016 through 2019. However, it elected S corporation status effective January 1, 2020. RGD had $50,000 of earnings and profits at the end of 2019. RGD reported the following information for its 2020 tax year.
What amount of excess net passive income tax is RGD liable for in 2020? (Round your answer for excess net passive income to the nearest thousand.)
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$7,350 (21% × $35,000). Passive investme...View Answer
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