A corporation that elected S status in 20X2 has C corporation earnings and

A corporation that elected s status in 20x2 has c

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77. A corporation that elected S status in 20X2 has C corporation earnings and profits of $50,000 from its C corporation years. During 20X5 the corporation's gross receipts are $120,000, which includes $75,000 of interest income. Expenses related to the interest income are$10,000. The corporation's excess passive investment income would be: a. $45,000.b. $35,000.*c. $39,000.d. $20,000. 78. An S corporation incurs an operating loss of $80,000 in 20X5 and makes no distributions to its shareholders during the year. Before considering the current year operating loss, Abe, a shareholder that owns 50 percent of the S corporation stock, has a basis in his shares of S corporation stock of $30,000 and a $20,000 basis in a note from the corporation. How much of the $80,000 loss can he deduct on his 20X5individual tax return? 79. On January 1, 20X6, an S corporation has accumulated E&P of $55,000from its years as a C corporation and has a positive AAA balance of $15,000. The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000. During 20X6, the corporation reports ordinary income of $10,000 and a $20,000 long-term capital gain. During20X6, the corporation distributes $65,000 to Betty. The amount of the distribution that represents a taxable dividend is:
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80. On January 1, 20X6, an S corporation has accumulated E&P of $55,000from its years as a C corporation and has a positive AAA balance of $15,000. The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000. During 20X6, the corporation reports ordinary income of $10,000 and a $20,000 long-term capital gain. During20X6, the corporation distributes $65,000 to Betty. The balance in the corporation's accumulated E&P at the end of 20X6 is: 81. A calendar-year S corporation has a balance in its AAA and accumulated E&P of $3,000 and $20,000, respectively, at the beginning of 20X9. During 20X9, the corporation has ordinary income of $10,000. Also during 20X9, the corporation makes a $15,000 distribution to its shareholders. What amount of the $15,000 distribution is taxed as dividend income to the shareholders? a. $0.*b. $2,000.c. $3,000.d. $5,000.e. $15,000. 82. A calendar-year S corporation has a balance in its AAA and accumulated E&P of $3,000 and $20,000, respectively, at the beginning of 20X9. During 20X9, the corporation has tax-exempt income of $5,000 and ordinary income of $10,000. Also during 20X9, the corporation makesa $15,000 distribution to its shareholders. If a bypass election is properly made for 20X9, what amount of the $15,000 distribution is taxed as dividend income to the shareholders? 83. A calendar-year S corporation has a balance in its AAA and accumulated E&P of $3,000 and $20,000, respectively, at the beginning of 20X4. During 20X4, the corporation has tax-exempt income of $5,000 and ordinary income of $10,000. Also during 20X4, the corporation makesa $15,000 distribution to its shareholders. If a bypass election is properly made for 20X4, what is the corporation's balance in its AAA and accumulated E&P at the beginning of 20X5?
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