An S Corporation Reports a Recognized Built-In Gain of $110,000

question 126

Multiple Choice

An S corporation reports a recognized built-in gain of $110,000 and taxable income of $98,000.The company carries an $8,000 NOL carryforward from a C corporation year,and a $7,000 business credit carryforward from a C corporation year.The built-in gains tax liability is:

• A)$31,500.
• B)$28,700.
• C)$24,500.
• D)$0.
• E)Some other amount.

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Definitions:

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Opioid Epidemic

A public health crisis involving an increased use of prescription and non-prescription opioid drugs, leading to widespread misuse, addiction, and deaths.

Cognitive-Behavioral Intervention

A therapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.