Worthy Corporation Elected to Be Taxed as an S Corporation

question 63

Multiple Choice

Worthy Corporation elected to be taxed as an S corporation on January 1,of last year,effective last year.It had previously been a C corporation.On the effective date of the S election,Worthy had land with a $70,000 basis and a $210,000 FMV.No net unrealized losses exist on the date of the S corporation election.The land is sold this year for $250,000.The tax result of the sale by Worthy is

• A)no gain or loss recognized.
• B)a gain of $180,000,none of which is subject to the built-in gains tax.
• C)a gain of $180,000,all of which is subject to the built-in gains tax.
• D)a gain of $140,000 subject to the built-in gains tax and passes though to shareholders,plus a $40,000 gain subject to the regular S corporation pass-through rules.

Comprehend voter behavior patterns, including straight-ticket and split-ticket voting, and their implications for elections.

Understand the historical development and ideological differences between major US political parties.

Evaluate the impact of economic, social, and political factors on voting patterns and party identification.

Analyze the role and impact of third parties within the US political system.

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Definitions:

Ejaculation

Reflexive expulsion of semen from the penis.

Prostatic Urethra

Part of the male urethra, approximately 2.5 cm in length, that passes through the prostate gland.

Semen

Penile ejaculate; thick, yellowish white, viscous fluid containing spermatozoa and secretions of the testes, seminal vesicles, prostate, and bulbourethral glands.

Emission

Discharge; accumulation of semen in the urethra prior to ejaculation. A nocturnal emission is a discharge of semen while asleep.