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Flint, an S corporation with substantial AEP, reports operating gross receipts of $410,000, taxable interest income of $390,000, operating expenses of $260,000, and deductions attributable to the interest of $150,000. Calculate the excess passive investment income (ENPI) and the associated penalty tax payable. Round any division to six decimal places and use in subsequent calculations. Show your work. Round your final answers to the nearest dollar. a. The ENPI is: ____ b. § 1375 penalty tax is: ____

Flint, an S corporation with substantial AEP, reports operating gross receipts of $410,000, taxable interest income of $390,000, operating expenses of $260,000, and deductions attributable to the interest of $150,000. Calculate the excess passive investment income (ENPI) and the associated penalty tax payable. Round any division to six decimal places and use in subsequent calculations. Show your work. Round your final answers to the nearest dollar. a. The ENPI is: ____ b. § 1375 penalty tax is: ____

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Flint, an S corporation with substantial AEP, reports operating gross receipts of $410,000, taxable interest income of $390,000, operating expenses of $260,000, and deductions attributable to the interest of $150,000.

Calculate the excess passive investment income (ENPI) and the associated penalty tax payable.

Round any division to six decimal places and use in subsequent calculations. Show your work. Round your final answers to the nearest dollar.

a. The ENPI is: ____

b. § 1375 penalty tax is: ____

 

Do not use previous Chegg answers as they are incorrect

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