Pepper Inc., an S Corporation that has “C” years E&P, has gross receipts of $780,000 ($400,000 from operating income and taxable interest of $380,000), operating income expenses of $250,000 and deductions attributable to the interest income of $140,000 during the current year. Calculate any §1375 penalty tax that this corporation must pay.
Pepper Inc., an S Corporation that has “C” years E&P, has gross receipts of $780,000 ($400,000 from operating income and taxable interest of $380,000), operating income expenses of $250,000 and deductions attributable to the interest income of $140,000 during the current year. Calculate any §1375 penalty tax that this corporation must pay.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 15DQ
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1.
Pepper Inc., an S Corporation that has “C” years E&P, has gross receipts of $780,000
($400,000 from operating income and taxable interest of $380,000), operating income expenses
of $250,000 and deductions attributable to the interest income of $140,000 during the current
year. Calculate any §1375 penalty tax that this corporation must pay.
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