PLEASE CALCULATE THE STOCK BASIS. EACH TIME I CALCULATED IT GIVES ME WRONG ANSWER!

Barry Porter and Winnie Weeks are considering making an S election on March 1, 2023, for their C corporation, Omniocular. However, first they want to consider the implications of the following information: - Winnie is a U.S. citizen and resident. - Barry is a citizen of the United Kingdom but a resident of the United States. - Barry and Winnie each owns 50 percent of the voting power in Omniocular. However, Barry's stock provides him with a claim on 60 percent of the Omniocular assets in liquidation. - Omniocular was formed under Arizona state law, but it plans on eventually conducting some business in Mexico. a. Is Omniocular eligible to elect S corporation status? For the remainder of the problem, assume Omnlocular made a valid S election effective January 1, 2023. Barry and Winnie each owns 50 percent of the voting power and has an equal claim on Omniocular's assets in liquidation. In addition, consider the following information: - Omniocular reports on a calendar tax year. - Omniocular's earnings and profits as of December 31, 2022, were $55,000. - Omniocular's 2022 taxable income was $15,000. - Omniocular's assets at the end of 2022 are as follows: Check my work mode: This shows what is correct or incorrect for the work you have completed so far. lt does not indict Totals * $110,000 under FIFO accounting. $980,$1,3, - On March 31, 2023, Omniocular sold the land for $42,000. - In 2023, Omniocular sold all the inventory it had on hand at the beginning of the year. This was the only inventory it sold during the year. - Assume that if Omniocular were a C corporation for 2023, its taxable income would have been $88,500. b. How much LIFO recapture tax (in total) is Omniocular required to pay and when is the first installment due? c. How much built-in gains tax, if any, is Omniocular required to pay? d. How much excess net passive income tax, if any, is Omniocular required to pay? e. Assume Barry's basis in his Omniocular stock was $40,000 on January 1,2023 . What is his stock basis on December 31,2023 ? For the following questions, assume that after electing S corporation status Barry and Winnie had a change of heart and filed an election to terminate Omniocular's S election, effective August 1, 2024. e. Assume Barry's basis in his Omniocular stock was $40,000 on January 1,2023 . What is his stock basis on December 31,2023 ? For the following questions, assume that after electing S corporation status Barry and Winnie had a change of heart and filed an election to terminate Omniocular's S election, effective August 1, 2024. - In 2024, Omniocular reported the following income/expense items: f. For tax purposes, how would you recommend Barry and Winnle allocate income between the short S corporation year and the short C corporation year if they would like to minimize double taxation of Omniocular's income? g. Assume in part (f) that Omniocular allocates income between the short S and C corporation years in a way that minimizes the double taxation of its income. If Barry's stock basis in his Omniocular stock on January 1,2024 , is $50,000, what is his stock basis on December 31, 2024? Note: Assume 366 days in a year. h. When is the earliest tax year in which Omniocular can be taxed as an S corporation again? When is the earliest tax year in which Omniocular can be taxed as an S corporation again? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. c. How much built-in gains tax, if any, is Omniocular required to pay? d. How much excess net passive income tax, if any, is Omniocular required to pay? e. Assume Barry's basis in his Omniocular stock was $40,000 on January 1,2023 . What is his stock basis on DE 2023? 2023? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Barry Porter and Winnie Weeks are considering making an S election on March 1, 2023, for their C corporation, Omniocular. However, first they want to consider the implications of the following information: - Winnie is a U.S. citizen and resident. - Barry is a citizen of the United Kingdom but a resident of the United States. - Barry and Winnie each owns 50 percent of the voting power in Omniocular. However, Barry's stock provides him with a claim on 60 percent of the Omniocular assets in liquidation. - Omniocular was formed under Arizona state law, but it plans on eventually conducting some business in Mexico. a. Is Omniocular eligible to elect S corporation status? For the remainder of the problem, assume Omnlocular made a valid S election effective January 1, 2023. Barry and Winnie each owns 50 percent of the voting power and has an equal claim on Omniocular's assets in liquidation. In addition, consider the following information: - Omniocular reports on a calendar tax year. - Omniocular's earnings and profits as of December 31, 2022, were $55,000. - Omniocular's 2022 taxable income was $15,000. - Omniocular's assets at the end of 2022 are as follows: Check my work mode: This shows what is correct or incorrect for the work you have completed so far. lt does not indict Totals * $110,000 under FIFO accounting. $980,$1,3, - On March 31, 2023, Omniocular sold the land for $42,000. - In 2023, Omniocular sold all the inventory it had on hand at the beginning of the year. This was the only inventory it sold during the year. - Assume that if Omniocular were a C corporation for 2023, its taxable income would have been $88,500. b. How much LIFO recapture tax (in total) is Omniocular required to pay and when is the first installment due? c. How much built-in gains tax, if any, is Omniocular required to pay? d. How much excess net passive income tax, if any, is Omniocular required to pay? e. Assume Barry's basis in his Omniocular stock was $40,000 on January 1,2023 . What is his stock basis on December 31,2023 ? For the following questions, assume that after electing S corporation status Barry and Winnie had a change of heart and filed an election to terminate Omniocular's S election, effective August 1, 2024. e. Assume Barry's basis in his Omniocular stock was $40,000 on January 1,2023 . What is his stock basis on December 31,2023 ? For the following questions, assume that after electing S corporation status Barry and Winnie had a change of heart and filed an election to terminate Omniocular's S election, effective August 1, 2024. - In 2024, Omniocular reported the following income/expense items: f. For tax purposes, how would you recommend Barry and Winnle allocate income between the short S corporation year and the short C corporation year if they would like to minimize double taxation of Omniocular's income? g. Assume in part (f) that Omniocular allocates income between the short S and C corporation years in a way that minimizes the double taxation of its income. If Barry's stock basis in his Omniocular stock on January 1,2024 , is $50,000, what is his stock basis on December 31, 2024? Note: Assume 366 days in a year. h. When is the earliest tax year in which Omniocular can be taxed as an S corporation again? When is the earliest tax year in which Omniocular can be taxed as an S corporation again? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. c. How much built-in gains tax, if any, is Omniocular required to pay? d. How much excess net passive income tax, if any, is Omniocular required to pay? e. Assume Barry's basis in his Omniocular stock was $40,000 on January 1,2023 . What is his stock basis on DE 2023? 2023? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount