Mock Corporation Converts to S Corporation Status in 2020

question 9

Multiple Choice

Mock Corporation converts to S corporation status in 2020. Mock used the LIFO inventory method in 2019 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 2019 corporate tax liability, assuming that Mock is subject to a 21% tax rate.

• A) $-0-
• B) $6,038
• C) $24,150
• D) $115,000

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Definitions:

Independent Variables

Variables in a study or experiment that are manipulated or changed by the researchers to determine their effects on the dependent variable.

Dependent Variable

In a study or experiment, this is the element that is predicted to alter due to modifications in the independent variable.

Regression Sum Of Squares

The portion of the total variance in a dependent variable that is explained by the regression model, indicating the model's explanatory power.

Coefficient Of Multiple Determination

A statistical measure that represents the proportion of the variance in the dependent variable that is predictable from the independent variables.