Question
A sole proprietorship incorporated on January 1 and elected S corporation status. The owner contributed the following assets to the S corporation < > B
A sole proprietorship incorporated on January 1 and elected S corporation status. The owner contributed the following assets to the S corporation
< >Basis Fair market value
Machinery $7,000 $8,000
Building 11,000 100,000
Cash 1,000 1,000
Two years later, the corporation sold the machinery for $4,000 and the building for $110,000. The machinery had accumulated depreciation of $2,000, and the building had accumulated depreciation of $1,000. What is the built-in gain recognized on the sale?
| a. | $100,000 |
| b. | $99,000 |
| c. | $6,000 |
| d. | $0 |
Choice: _____
< >Basis Fair market value
Machinery $7,000 $8,000
Building 11,000 100,000
Cash 1,000 1,000
Two years later, the corporation sold the machinery for $4,000 and the building for $110,000. The machinery had accumulated depreciation of $2,000, and the building had accumulated depreciation of $1,000. What is the built-in gain recognized on the sale?
| a. | $100,000 |
| b. | $99,000 |
| c. | $6,000 |
| d. | $0 |
Choice: _____
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Auditing Practices In Local Governments An International Comparison
Authors: Laurence Ferry, Pasquale Ruggiero
1st Edition
180117086X, 978-1801170864
