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RGD Corporation Was a C Corporation from Its Inception in 2014

Question 65

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RGD Corporation was a C corporation from its inception in 2014 through 2017. However, it elected S corporation status effective January 1, 2018. RGD had $50,000 of earnings and profits at the end of 2017. RGD reported the following information for its 2018 tax year.
RGD Corporation was a C corporation from its inception in 2014 through 2017. However, it elected S corporation status effective January 1, 2018. RGD had $50,000 of earnings and profits at the end of 2017. RGD reported the following information for its 2018 tax year. What amount of excess net passive income tax is RGD liable for in 2018? (Round your answer for excess net passive income to the nearest thousand).
What amount of excess net passive income tax is RGD liable for in 2018? (Round your answer for excess net passive income to the nearest thousand).

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$7,350 (21% × $35,000). Passive investme...

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