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Mock Corporation converts to S corporation status after the end of its calendar 2018 tax year. Mock used the LIFO inventory method and had a
Mock Corporation converts to S corporation status after the end of its calendar 2018 tax year. Mock used the LIFO inventory method and had a LIFO inventory of $435,000 (FIFO value of $950,000) on the date of the S election. How much tax must be added to Mocks 2018 corporate tax liability, assuming that Mock is subject to a 21% tax rate.
a. $0
b. $10,063
c. $27,038
d. $45,063
e. $180,250
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