Assume that Clampett, Inc., has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of...
Assume that Clampett, Inc., has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of interest income, and $40,000 of dividends. Assume that Clampett, Inc., has $1,000 of earnings and profits from prior C corporation years and that the corporate tax rate is 21 percent. Clampett, Inc.'s taxable income would have been $122,000 this year if it had been a C corporation. What is Clampett, Inc.'s excess net passive income tax?
a) 0
b) 5,250
c) 26,250
d) 21,000
e) None of the choices are correct.
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