During 2017,MVC Operated as a C Corporation

question 28

Essay

During 2017,MVC operated as a C corporation.However,it made an election to be taxed as an S corporation effective January 1,2018.MVC uses the accrual method of accounting and uses the LIFO method of accounting for its inventory.At the end of 2017 its inventory basis under the LIFO method was $80,000.If MVC had used the FIFO method of accounting for its inventory,it would have had a $100,000 basis in its inventory.Finally,MVC's regular taxable income in 2017 was $5,000.What amount of LIFO recapture tax must MVC pay? When must it pay the tax?

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Definitions:

Sexual Involvement

Engagement in sexual activities or relationships, which can be influenced by cultural, social, and individual factors.

Known Societies

refers to human communities that are recognized and have been studied, including their cultural, economic, social, and political aspects.

Marriage

A culturally sanctioned union between two or more people that establishes certain rights and obligations between the people, between them and their children, and between them and their in-laws. Such marriage rights and obligations most often include, but are not limited to, sex, labor, property, child rearing, exchange, and status.

Sharia Law

A religious legal system governing the members of the Islamic faith.