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Alomar Corporation was a C Corporation prior to making an S election. At the time the S election was made, it had land (A/B $500,000;
Alomar Corporation was a C Corporation prior to making an S election. At the time the S election was made, it had land (A/B $500,000; FMV $1,500,000) Two years after the election, it sold the land for $2,000,000. At the time of the sale, the corporation had non- separately stated income (taxable income) of $800,000.
a. What is the amount of the 1374 tax in the current year?
b. How would your answer change if the corporation only had non-separately-stated income of $400,000 during the current year?
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