Mock Corporation Converts to S Corporation Status in 2015

question 20

Multiple Choice

Mock Corporation converts to S corporation status in 2015.Mock used the LIFO inventory method in 2014 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 2014 corporate tax liability,assuming that Mock is subject to a 35% tax rate.

• A)$0
• B)$10,062.50
• C)$40,250
• D)$115,000
• E)Some other amount

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Definitions:

Heart Skeleton

Fibrous connective tissue that provides a point of attachment for cardiac muscle cells, electrically insulates the atria from the ventricles, and forms the fibrous rings around the valves.

Electrical Insulation

Materials or systems that prevent the passage of electrical current, used to protect, isolate, and contain electrical conductors.

Atria

The two upper chambers of the heart that receive blood from the veins and pump it to the ventricles.

Depolarization

The process in which a cell's membrane potential becomes less negative, making it more likely to fire an action potential.