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A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14. By

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14. By the end of the year, $60,000 of these receivables are collected. Calculate any built-in gains tax, assuming that there is sufficient taxable income.

a.$12,600

b.$0

c.$21,000

d.$35,000

Answer c. is incorrect

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