​Lent Corporation Converts to S Corporation Status for This Year

question 68

Multiple Choice

​Lent Corporation converts to S corporation status for this year.Lent had been using the LIFO inventory method and held a LIFO inventory value of $510,000 (FIFO value of $650,000) .How much tax must be added to the C corporation tax liability for the year before the S election,assuming that Lent is subject to a 35% tax rate.

• A)​$0.
• B)​$12,250.
• C)​$49,000.
• D)​$140,000.

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Definitions:

Biopsychologist

A scientist who studies the interaction between biological processes and psychological phenomena.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without intervention by the researchers.

Phylogenetic Scale

A hierarchical system that classifies organisms based on their evolutionary relationships.

Ganzfeld Procedure

A technique used in parapsychology to test individuals for extrasensory perception (ESP) by creating a uniform sensory field to remove all external stimuli.