Wood Corporation was a C corporation in 2013 but elected to be taxed as an S corporation in 2014. At the end of 2013, its earnings and profits were $15,500. The following table reports Wood's (taxable) income for 2014 (its first year as an S corporation).
Wood Corporation
Income Statement
December 31, 2014
Sales Revenue ...................................... $150,000
Cost of Goods Sold ................................ (35,000)
Salary to owners .................................... (60,000)
Employee Wages ................................... (50,000)
Depreciation Expense ............................... (4,000)
Miscellaneous Expenses ............................ (4,000)
Interest income ....................................... 8,000
Dividend Income .................................... 2,000
Overall Net Income ................................. $7,000
What is Wood Corporation's excess net passive income tax for 2014?