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., never operated as a C corporation and that the corporate tax rate is 21 percent. What is Clampett, Inc.'s excess net passive income tax?
A. $100,000.
B. $0.
C. $75,000.
D. $21,000.
E. None of the choices are correct.
Answer: B
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