Lindal Corporation, organized in 2019, immediately filed an election for S corporation status under the rules of Subchapter S. What is the maximum amount of passive investment income that Lindal will be allowed to earn and still qualify as an S corporation?
A.80% of gross receipts.
B.50% of gross receipts.
C.20% of gross receipts.
D.No limit on passive investment income.
Answer: D. No limit on passive investment income.