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

question 4

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 are 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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Definitions:

Autism Spectrum Disorder

A developmental disorder that affects communication and behavior, ranging from mild to severe.

Socioeconomic Status

The social standing or class of an individual or group, often measured as a combination of education, income, and occupation.

Savants

Individuals who demonstrate extraordinary abilities in a specific area, such as memory or music, often alongside developmental conditions like autism.

Moderate Intellectual Disability

A level of intellectual disability characterized by significantly below-average intellectual functioning and limitations in adaptive behavior, manifesting during the developmental period.