B Corporation Elected to Convert from C Status to S

question 42

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: $\begin{array} { l }\text { Basis }&FMV&\text { Gain/Loss }\\\text { Inventory }&\$30,000&\$70,000&\$40,000\\\text { Land/Building }&150,000&750,000&600,000\\\text { Trucks }&25,000&15,000&(10,000) \\\text { Total }&\$205,000&\$835,000&\$630,000\end{array}$
In the first taxable year after B became an S corporation, it sold the inventory held by the C corporation for $70,000 and the truck fleet acquired in the C corporation years for $15,000.In the first taxable year as an S corporation, there was no dividend income, and B's taxable income was determined as if it were a C corporation is $50,000.From the C corporation operations, there is NOL carryover of $5,000.For the first taxable year, the top corporate tax rate is 35 percent.B's built-in gains tax for the first taxable year as an S corporation is

• A)$15,300
• B)$8,750
• C)$10,500
• D)$17,000

Understand the MORAL decision-making model's steps and application in resolving ethical issues.

Apply deontological and consequentialist theories, including utilitarianism, in ethical decision-making in nursing.

Illustrate the nurse's role in advocating for patient autonomy and ethical agency in clinical settings.

Recognize the significance of professional and personal values in guiding ethical behavior in nursing.

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Definitions:

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts from the total gross sales.

Cost of Goods Sold

An expense measured as the total direct costs attributable to the production of goods sold by a company.

Departments

Distinct divisions within a company or organization designated to handle specific tasks or functions, such as sales, marketing, or human resources.

Catering Department

A division within a company or a facility that is responsible for providing food services for events, meetings, and functions.