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During 2019, MVC Operated as a C Corporation

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During 2019, MVC operated as a C corporation.However, it made an election to be taxed as an S corporation effective January 1, 2020.MVC uses the accrual method of accounting and uses the LIFO method of accounting for its inventory.At the end of 2019 its inventory basis under the LIFO method was $63,000.If MVC had used the FIFO method of accounting for its inventory, it would have had a $70,000 basis in its inventory.Finally, MVC's regular taxable income in 2019 was $80,000.What amount of LIFO recapture tax must MVC pay? When must it pay the tax?


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