MWC Is a C Corporation That Uses the Accrual Method

question 152

Essay

MWC is a C corporation that uses the accrual method of accounting. MWC made an S election, effective January 1 of 2020. The following assets were owned by MWC on December 31, 2019.
What is MWC's net unrealized built-in gain when it converts to an S corporation on January 1, 2020?

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Definitions:

Instant Messaging

A form of communication over the internet that allows two or more participants to send text messages in real-time.

Wi-Fi Direct

Wi-Fi Direct is a standard that allows Wi-Fi devices to connect to each other without requiring a wireless access point, enabling device-to-device connections.

WiMAX

Worldwide Interoperability for Microwave Access, a technology for broadband wireless networks providing high-speed internet access over long distances.

Bluetooth

A wireless technology standard for exchanging data over short distances from fixed and mobile devices.