B Corporation Elected to Convert from C Status to S

question 52

Multiple Choice

B Corporation elected to convert from C status to S status.B uses the accrual basis.At the time the election takes effect, the records show: $\begin{array} { l }\text { Basis }&FMV&\text { Gain/Loss }\\\text { Inventory }&\$30,000&\$70,000&\$40,000\\\text { Land/Building }&150,000&750,000&600,000\\\text { Trucks }&25,000&15,000&(10,000) \\\text { Total }&\$205,000&\$835,000&\$630,000\end{array}$
B's net unrealized built-in gain is

• A)$630,000
• B)$635,000
• C)$640,000
• D)$645,000

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