Mock Corporation Converts to S Corporation Status in 2016

question 34

Multiple Choice

Mock Corporation converts to S corporation status in 2016. Mock used the LIFO inventory method in 2015 and had a LIFO inventory of $435,000 (FIFO value of $550,000) on the date of the S election. How much tax must be added to Mock's 2015 corporate tax liability, assuming that Mock is subject to a 35% tax rate.

• A)$0
• B)$10,062.50
• C)$40,250
• D)$115,000
• E)Some other amount

Acknowledge the importance of technical, conceptual, and human skills at different levels of management.

Comprehend the principles of management and their applicability to both for-profit and non-profit organizations.

Grasp the concepts of delegation and the importance of vision in guiding organizational actions.

Identify the steps involved in the strategic planning process and the role of ethical considerations in business decisions.

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Definitions:

1,3,5-Hexatriene

A linear, conjugated hydrocarbon with alternating single and double bonds.

Major Organic Product

The major product of an organic chemical reaction, noted for its highest degree of yield.

Organic Reaction

A chemical reaction involving organic compounds, where the basic backbone of the compounds is carbon.

Diels-Alder Reaction

A chemical reaction between a conjugated diene and a substituted alkene, typically producing a cyclic compound.