Question
A cash basis calendar year C corporation has taxable income of $300,000 for the year. It also has built in gains of $220,000 on the
A cash basis calendar year C corporation has taxable income of $300,000 for the year. It also has built in gains of $220,000 on the date of its conversion to an S corporation on February 14. Calculate any built-in gains tax, using 35% for the top corporate rate.
A. $0 B. $28,000 C. $77,000 D. $105,000
Please show calculations.
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Managerial Accounting
Authors: Kurt Heisinger, Joe Ben Hoyle
1st Edition
1453345299, 9781453345290
