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Required information [The following information applies to the questions displayed below.] Virginia Corporation is a calendar-year corporation. At the beginning of 2019, its election to
Required information [The following information applies to the questions displayed below.] Virginia Corporation is a calendar-year corporation. At the beginning of 2019, its election to be taxed as an S corporation became effective. Virginia Corp.'s balance sheet at the end of 2018 reflected the following assets it did not have any earnings and profits from its prior years as a C corporation). Asset Cash Accounts receivable Inventory Land Totals Adjusted Basis FMV $ 22,750 $ 22,750 43,300 43,300 96,050 211,550 172,000 199, 200 $334,100 $ 476,800 In 2019, Virginia Corp. reported business income of $55,500 (this would have been its taxable income if it were still a C corporation). a. During 2019, Virginia Corp. sold inventory it owned at the beginning of the year for $107,150. The basis of the inventory sold was $59,950. What is Virginia's built-in gains tax on the sale of the inventory in 2019
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