A Cash Basis Calendar Year C Corporation Reports $100,000 of Accounts

question 62

Multiple Choice

A cash basis calendar year C corporation reports $100,000 of accounts receivable on the date of its conversion to S status on February 14. By the end of the year, $60,000 of these receivables have been collected. Calculate any built- in gains tax, assuming that there is sufficient taxable income.

• A) $-0-
• B) $12,600
• C) $21,000
• D) $35,000

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The logical or chronological order in which events, ideas, or processes follow one another.

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