During 2017,MVC Operated as a C Corporation

question 28

Essay

During 2017,MVC operated as a C corporation.However,it made an election to be taxed as an S corporation effective January 1,2018.MVC uses the accrual method of accounting and uses the LIFO method of accounting for its inventory.At the end of 2017 its inventory basis under the LIFO method was $80,000.If MVC had used the FIFO method of accounting for its inventory,it would have had a $100,000 basis in its inventory.Finally,MVC's regular taxable income in 2017 was $5,000.What amount of LIFO recapture tax must MVC pay? When must it pay the tax?

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Philosophical Questions

Fundamental inquiries that explore the nature of reality, existence, knowledge, values, reason, mind, and language.

Important Decisions

Choices that have a significant impact on an individual's life or circumstances.

Trivial Incidents

Events or occurrences that are of little importance, insignificant in scale or consequence.

Rene Descartes

A 17th-century French philosopher, mathematician, and scientist who is often referred to as the father of modern philosophy.