A Cash Basis Calendar Year C Corporation Reports $100,000 of Accounts

question 55

Multiple Choice

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14.By the end of the year,$60,000 of these receivables are collected.Calculate any built-in gains tax,assuming that there is sufficient taxable income.

• A)$0
• B)$10,000
• C)$21,000
• D)$35,000
• E)Some other amount

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Definitions:

Reflect

To think deeply or carefully about something, often involving a process of self-examination or consideration of past events.

Moral Values

Principles or standards of behavior that dictate what is considered right or wrong, guiding ethical conduct.

Ingroup Member

An individual who belongs to and identifies with a specific social group, sharing common interests, values, or characteristics with other members.

Pluralistic Ignorance

A situation where a majority of group members privately reject a norm, but incorrectly assume that most others accept it, leading to a disconnect between beliefs and behaviors.