SEC Corporation Has Been Operating as a C Corporation Since

question 79

Essay

SEC Corporation has been operating as a C corporation since 2016.It elected to become an S corporation, effective January 1, 2019.On December 31, 2018, SEC reported a net unrealized built-in gain of $60,000.In addition to other transactions in 2019, SEC sold inventory it owned at the beginning of 2019 (it did not sell any other assets it owned at the beginning of 2019).At the beginning of the year, the inventory it sold had a fair market value of $30,000 and a FIFO tax basis of $10,000.SEC sold the inventory for $35,000.If SEC had been a C corporation in 2019, its taxable income would have been $100,000.How much built-in gains tax must SEC pay in 2019?

Differentiate between scenarios of legal and illegal price discrimination.

Recognize examples of perfect and imperfect price discrimination in various contexts.

Analyze the effects of price discrimination on consumer surplus and deadweight loss.

Comprehend the role of price discrimination in maximizing profits in monopolistic markets.

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Definitions:

Social Media

Digital platforms that enable users to create, share, or exchange information, ideas, and content among communities and networks.

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions.

Landrum-Griffin Act

Federal legislation that primarily governs the internal operations of labor unions. It requires financial disclosures by unions, establishes penalties for financial abuses by union officials, and includes “Labor’s Bill of Rights” to protect employees from their own unions.

Gross Misconduct

Serious behavior on the part of an employee which can justify immediate dismissal without notice, typically because it causes significant harm to the business or its employees.