Mock Corporation Converts to S Corporation Status in 2018

question 84

Multiple Choice

Mock Corporation converts to S corporation status in 2018.Mock used the LIFO inventory method in 2017 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 2017 corporate tax liability,assuming that Mock is subject to a 35% tax rate.

• A)$0
• B)$10,063
• C)$40,250
• D)$115,000
• E)Some other amount

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Definitions:

Nonresponse Bias

A distortion in survey or research results caused by a significant portion of participants not responding, potentially leading to unrepresentative outcomes.

Final Sample

The ultimate selection of units or participants that have been chosen for a study or survey.

Significantly Different

A term often used in statistics to indicate that the difference in results or observations is not due to chance and is important enough to be considered noteworthy.

Text Classifier

An algorithm or model used to assign predetermined categories to text based on its content.