Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.) Problem 11-47 Part a (Algo) a. Clarion Corporation Passive Investment Corporate Earnings and Profits $ 321, 900 321, 900 232, 000 101, 200 Year Gross Receipts $ 1, 354, 458 1, 231, 189 1, 141, 218 1, 348, 287 1, 501, 380 Income $ 255, 000 105, 000 305, 000 355, 000 405, 000 1 2 3 4 Would the S election be terminated?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 11-47 (LO 11-2) (Algo)
[The following information applies to the questions displayed below.]
Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these
corporations have its S election terminated due to excessive passive income? If so, in what year? All became S
corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.)
Problem 11-47 Part a (Algo)
a. Clarion Corporation
Passive Investment Corporate Earnings
Year
Gross Receipts
$ 1, 354, 458
1, 231, 189
1, 141, 218
1, 348, 287
1, 501, 380
Income
$ 255, 000
105, 000
305, 000
355, 000
405, 000
and Profits
$ 321, 900
321, 900
232, 000
101, 200
1
3
4
5
Would the S election be terminated?
Transcribed Image Text:Required information Problem 11-47 (LO 11-2) (Algo) [The following information applies to the questions displayed below.] Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its S election terminated due to excessive passive income? If so, in what year? All became S corporations at the beginning of year 1. (Leave no answer blank. Select "NA" if no effect.) Problem 11-47 Part a (Algo) a. Clarion Corporation Passive Investment Corporate Earnings Year Gross Receipts $ 1, 354, 458 1, 231, 189 1, 141, 218 1, 348, 287 1, 501, 380 Income $ 255, 000 105, 000 305, 000 355, 000 405, 000 and Profits $ 321, 900 321, 900 232, 000 101, 200 1 3 4 5 Would the S election be terminated?
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