Required information [The following information applies to the questions displayed below.] Virginia Corporation is a calendar-year corporation. At the beginning of 2021, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2020 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Cash Asset Accounts receivable Inventory Land Totals Adjusted Basis $ 23,250 43,900 97,150 176,000 $ 340,300 FMV $ 23,250 43,900 213,650 203,600 $ 484,400 In 2021, Virginia Corporation reported business income of $56,500 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? a. During 2021, Virginia Corporation sold inventory it owned at the beginning of the year for $108,450. The basis of the inventory sold was $60,850. What is its built-in gains tax in 2021? Built-in gains tax < Prev 30 31 32 of 33 Next >