Crew, an S corporation, has gross receipts of $190,000 and gross income of $170,000. Crew has AEP of $22,000 and ordinary income of $29,000. It has passive investment income of $100,000, with $40,000 of expenses directly related to the production of passive investment income.
(I) What are the requirements to elect S corporation status?
(II) find out Crew's excess net passive income.
(III) find out the passive investment income penalty tax.