Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. neal corporation was initially formed as a c corpo

Neal Corporation was initially formed as a C corporation with a calendar year end. Neal...

80.2K

Verified Solution

Question

Accounting

Neal Corporation was initially formed as a C corporation with a calendar year end. Neal elected S corporation status, effective January 1, 2015. On December 31, 2014, Neal Corp. reported earnings and profits of $150,000. Beginning in 2015, Neal Corp. reported the following information. Does Neal Corp.'s S election terminate due to excess net passive income? If so, what is the effective date of the termination?

Year Gorss receipts (including passive investment income) Passive investment income Corporate earnings and profits ( End of the Year )
2015 $400000 $120000 $140000
2016 300000 70000 100000
2017 500000 130000 70000
2018 400000 110000 40000
2019 600000 155000 1000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

ocal cell phone company charges you 55 a month for using their service You pay...

Biology
Q

4 A 1500 kg satellite orbits the moon at an altitude of 2 3 10...

Physics
Q

daughter nuclei respectively in a radioactive decay The Q value of decay is Q and...

Physics
Q

The points (-8, 3) and (-9, 5) fall on a particular line. What is its...

Basic Math
Q

Ben walks at a rate of 3 miles per hour. He runs at a rate...

Basic Math
Q

A random sample of 25 Real Estate listings for houses in the Northeast section of...

Basic Math
Q

the following items were taken from the financial statements of mike inc., over a five-year...

Accounting
Q

dditional information: 1. The investment in equity securities account includes an investment in common stock...

Accounting
Q

Brief Exercise 5-15 Your answer is partially correct. Try again. A. Hall Company has the...

Accounting
Q

Take note of the following supplementary information: Cheque no. 390 was issued six months...

Accounting
Q

i ii. liumici 10 Tiili VUIN Score: 0 of 1 pt X P18-2 (similar to)...

Finance
Q

From the creditor's perspective, what is the purpose of loan covenants? To assist government agencies...

Accounting