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

Identify the critical components and distinctions of public protection programs and retirement plans.

Assess the role of employer and employee interests in shaping benefit packages.

Evaluate how companies view their employees and the organizational benefits of supportive HR policies.

Understand the challenges and considerations in offering specialized benefits such as on-site daycare/eldercare centers.

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Definitions:

Recessionary Gap

A situation in an economy where the actual output is less than the potential output, indicating underutilized resources and unemployment.

Raise G

This term is ambiguous without context, but it could refer to increasing government spending or investment in certain contexts.

Social Security Tax

A tax paid equally by employee and employer, based on employee’s wages. Most proceeds are used to pay Social Security retirement and Medicare benefits.

Personal Income Tax

A tax levied on individuals or entities based on their income or profits.